BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities were left to drift on Friday as the key index was devoid of any direction for market players to follow.
As a result, the FBM KLCI ended Friday’s session nearly unchanged after it surrendered its intraday gains with energy stocks ended the day’s big losers.
Meanwhile, lower liners and broader market shares also lost ground as market interest continues to thin, cumulating in losing stocks ahead of gaining ones to end the week.
The near-term outlook is likely to stay mostly indifferent as a definitive market direction is still absent that could keep most market players cautious for the time being.
This is likely to see the FBM KLCI continuing to drift for now due to the lack of catalysts, both from domestic and foreign sources that are likely to remain subdued by the potentially slower economic conditions.
However, the key index has been staying close to the psychological 1,500 level which should continue to be the level that it could linger for now.
Consequently, the broadly sideway trend is likely to prolong with the key index likely to trend within the 1,480 and 1,510 levels for now. There is an interim support at 1,485 points while the immediate hurdle is the 1,500 level.
Malacca Securities Research
The FBM KLCI ended marginally lower on Friday amid mixed regional markets. The local bourse could remain wobbly over the near term as market sell-off intensified on Wall Street while crude oil price remained under pressure.
Meanwhile, investors may keep an eye on the European Central Bank’s and Bank Negara Malaysia’s (BNM) interest rate decisions which will be released this week.
Commodities-wise, both the Brent crude and crude palm oil (CPO) were traded below the US$100/barrel and RM4,000/metric tonne levels respectively.
The FBM KLCI remained below its daily EMA60 level last week. Technical indicators turned mixed as the MACD Histogram extended a positive bar while the RSI hovered below 50.
The resistance is pegged along 1,530-1,550 while support is located at 1,450-1,465. – Sept 5, 2022
