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 succumbed to profit taking last Friday, reversing some of the window dressing activities that were prevalent for most of the week.
However, the pullback was relatively benign as the key index managed to keep the 1,390 level at the close.
Still, most broader market shares were lower with healthcare stocks the main losers and market breadth staying in the negative territory.
Traded volumes jumped to 4.9 billion shares amid the increased selling but the traded value was only marginally higher.
With window dressing activities winding down, market conditions are also likely to become increasingly lacklustre amid the waning buying support.
At the same time, market conditions are likely to remain subdued and cautious ahead of the upcoming state elections that could see most market players opting for the sidelines for now.
Short-term leads are also likely to be far and in-between with external leads also thinning following the pullback in many key global equity indices on concerns over further interest rate hikes in 2H 2023.
While there could still be some window dressing activities ahead, the increasing profit taking activities could still place the 1,390 support in jeopardy.
If this level is breached, the next support is at the 1,385-1,387 levels, followed by the 1,380 level. The resistances, meanwhile, are at 1,395 points and the psychological 1,400 level.
Malacca Securities Research
The FBM KLCI snapped a three-day winning streak along with the regional peers as worries over potential slowdown in the global economic growth re-surfaced following comments of the US Federal Reserve chairman last week.
This week, we believe the market will continue to monitor economic data from Japan, the US and China for further clarity in the current state of the economy.
Meanwhile, the pullback on Wall Street last Friday, coupled with the bigger-than-expected rate hike from the Bank of England as well as Japanese inflation rising faster-than-expectation may weigh on the market sentiment.
Commodities-wise, Brent crude oil traded above US$73/barrel while crude palm oil (CPO) price hovered above RM3,600/metric tonne.
The FBM KLCI slid below its daily EMA 20 level as earlier gains evaporated in the afternoon session. Technical indicators were remained mixed as the MACD Histogram extended a positive bar while the RSI is slightly below 50.
Resistance is pegged along 1,400-1,440 while the support is set around 1,370. – June 26, 2023
