BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks ended the week on a high as fresh buying interest were steadfast, hence sending the key index to its highest level in nearly a month.
Much of the gains were on banking stocks with most other sector indices also closing in the green. Lower liners and broader market shares also tipped higher on renewed trading interest which helped market breadth to remain on the positive side for the day.
However, traded volumes slipped and was just marginally above the 2 billion mark.
Although the FBM KLCI’s recent gains were welcomed to break its downtrend, profit taking may emerge at the start of the week after the hefty gains attained last week even as there are no signs of any pullback as yet.
As much of the recent gains were on low volumes, follow through buying interest may still be too scant to sustain further gains following the spate of rotational buying interest.
Renewed weakness among key global indices could also result in the emergence of quick profit taking activities that could leave the key index to drift again.
For now, however, any pullback will be mild with the key index to find support at the 1,460 level. Below that, the other support is at 1,450 points while the hurdles are at the 1,472-1,476 levels followed by the 1,480 level.
Malacca Securities Research
The FBM KLCI ended on a positive note last Friday amid the return of foreign funds which noted gains accelerated on the banking heavyweights.
However, we believe the key index may succumb to mild profit taking activities following the overnight pullback on Wall Street.
Nevertheless, the broader market may stay positive-bias over the near term as it has dropped significantly lower over the past two weeks into the oversold region.
This week, investors will be watching closely on the US Federal Reserve’s interest rate decision.
Commodities-wise, Brent crude has stabilised around US$103/barrel while crude palm oil (CPO) traded above RM3,700/metric tonne.
The FBM KLCI closed above its immediate resistance level at 1,460, marking the third consecutive session of gains.
Technical indicators remained positive as the MACD Histogram has extended a positive bar while the RSI hovered above the 50 level. The next resistance is located along 1,480-1,500 while support is set at 1,400-1,410. – July 25, 2022
