What to expect on Bursa Malaysia this Monday

BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:

Inter-Pacific Research

There was more weakness on the FBM KLCI as it shed another eight points to end last week below the 1,380 level on an extended selling spell that again trimmed all of June’s window dressing gains.

Much of the sell-down was from banking and plantation stocks that also saw the key index tracking the regional indices to end lower.

The broader market was also subdued with the selling pressure remaining to leave the market breadth on a negative note while traded volumes continued to thin below 2 billion shares.

With near-term market conditions still subdued and devoid of leads, the downsides are likely to remain a feature amid sentiments that are also still weighed down by concerns over the state of the global economy and the upcoming state elections.

As a result, market players could remain on the sidelines with the key index looking to drift further with the lack of direction.

With the downside bias remaining, the key index could also retest the year-low of 1,374 points again and if it is breached, the next support is lowered to the 1,369 level. The 1,380 level has become the immediate hurdle which is followed by the 1,385 level.

Malacca Securities Research

The FBM KLCI were beset by another round of selling activities after lingering mostly in the negative territory for most of the trading session, whileforeign funds stepped up in their net selling position.

For now, investors will be watching the impending release of Malaysia’s unemployment rate. The lower liners may undergo a consolidation after delivering a solid performance last week.

While the recovery is still in place, we expect the upside to be limited amid quick profit taking activities. Meanwhile, we reckon that the focus will shift towards the upcoming barrage of corporate earnings in the US.

Commodities-wise, Brent crude recovered above US$78/barrel while crude palm oil (CPO) price slipped towards near RM3,800/metric tonne.

The FBM KLCI formed another bearish candle to remain below EMA20 as weakness persisted throughout majority of the trading session. Technical indicators remained mixed as the MACD Histogram formed another positive bar but the RSI hovered below 50.

The immediate resistances are envisaged along 1,413-1,430 while the support is pegged around 1,370. – July 10, 2023

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