BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Profit-taking emerged at the end of last week with market conditions turning mixed ahead of the weekend after the upward moves earlier in the week.
Most index linked stocks retreated, particular banking stocks. However, plantation stocks were the outperformers while energy stocks lost ground.
Losers were marginally ahead of gaining stocks as many lower liners regained ground.
Market conditions could turn mixed over the near term as the market could become indecisive with the lack of a definitive direction.
As it is, the recent market recovery has largely allowed the key index to recoup some of its steep losses and to reflect the prevailing economic and market environment.
Still, the key index has managed to hold on to the 1,500 level where it would attempt to hover for the time being as market players await for further developments that could dictate its direction in due course.
On the downside, the supports are at 1,495 and 1,480 points respectively while the resistances are located at the 1,507-1510 levels followed by 1,523 points.
Malacca Securities Research
The FBM KLCI retreated mildly on the back of elevated tension between China and Taiwan.
Also, with the market expecting a more hawkish tone from the Federal Open Market Committee (FOMC) meeting going forward after the better-than-expected jobs data on Friday, we expect the near-term volatility to persist.
However, we believe the downside risk might be limited if the economy is on the recovery tone with short term upward move could be seen.
Similarly, as we are heading into the August reporting month, investors may position themselves ahead of the period within sectors with higher earnings certainty.
Commodities-wise, Brent crude is trading around US$94/barrel while crude palm oil (CPO) price is hovering around RM3,800-3,900/metric tonne.
Although the FBM KLCI fell on Friday, it is still hovering above 1,500. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Investors should watch the next resistance along 1,530-1,550 and support is set at 1,460-1,480. – Aug 8, 2022
