BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI ended the week on a whimper as the previous day’s rebound lost steam on the lack of follow through buying.
Banking stocks retreated to leave the key index to drift but technology names emerged as the day’s big movers which also enabled the technology index to head higher.
Still, most stocks were in the negative band as losers were still ahead of gaining stocks while volumes stood barely above the 2 billion mark.
Despite the relatively insipid market conditions, Malaysian stocks may still head higher to start the week, riding on the coat tails of a strong comeback in global equities last Friday.
Such positivity should permeate to Malaysian equities and should easily nudge the key index back above the 1,420 level.
Nevertheless, significant upsides may still be elusive given that market sentiments have not improved with market players likely to stay wary due to the challenging global economic undertone.
Therefore, the modest recovery may only see the key index making an attempt to climb to the 1,425-1,430 levels for the time being. Beyond those levels, the other hurdle is at 1,437 points.
On the downside, the supports remain at 1,411 and the psychological 1,400 level.
Malacca Securities Research
The FBM KLCI ended the week with marginal losses as quick profit taking activities emerged on selected heavyweights.
While the local bourse may be poised for a rebound following the strong gains on Wall Street, we believe recession fears will continue to permeate investors’ sentiment in the near term.
Meanwhile, investors may be watching the European Central Bank’s meeting and Malaysia’s inflation data later this week.
On the commodity front, Brent crude has rebounded by trading above the USD101/barrel mark while crude palm oil (CPO) price hovered around RM3,600/metric tonne.
The FBM KLCI booked marginal losses with the key index remained below its daily EMA9 level. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI hovered below zero.
Support is pegged along 1,380-1,400 while resistance is set at around 1,430-1,460. – July 18, 2022
