BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Stocks in Bursa Malaysia rebounded yesterday, breaking its seven-day losing streak and climbed back above the 1,590 level at the close.
Bargain hunting activities finally emerged on some of the beaten down index heavyweights that also rose in tandem with the gains among regional indices.
At the same time, the lower liners followed suit to post a recovery, thus allowing market breadth to turn positive for the day. Traded volumes, however, were thinner as they slipped nearly 10% to below 5 billion shares.
Yesterday’s recovery is welcomed to bring some reprieve to the market where sentiments were dented by the successive falls over the past two weeks that have also left conditions oversold.
Following the rebound, the key index could now be angling for more near-term gains as it looks to extend its rebound.
However, further gains could be measured for the time being unless there is a pick-up in market activities.
As it is, many market players are still on the sidelines for a more definitive market direction to emerge and their absence could temper the recovery prospects as the key index looks to fortify its position above the 1,590 level.
If so, the FBM KLCI could head towards its next hurdle at the 1,595 level before making a fresh attempt at the psychological 1,600 level. On the flipside, the supports are pegged at 1,585 and 1,580 points respectively.
Malacca Securities Research
The FBM KLCI closed higher with the help of YTL-related heavyweights, snapping a seven-day losing streak which also saw a rebound in the FBM70 and FBM Small Cap indices.
Meanwhile, the US stock markets rose for the second day after the Federal Reserve commented that the biggest banks operating in the US will be able to withstand a severe recession scenario while maintaining their ability to lend to consumers and corporations.
This week, traders will still be monitoring the PCE (personal consumption expenditures) data to find more clues on the interest rate directions going forward.
On the commodity markets, Brent crude rebounded off the support zone and traded above US$84/barrel while gold price fell significantly below US$2,330/oz. Meanwhile, CPO (crude palm oil) continues to trade within the range-bound zone of below RM3,900/metric tonne.
The FBM KLCI index rebounded close to breaching the 1,590 level. The technical readings on the key index were mixed with the MACD Histogram forming a positive bar while the RSI is oversold.
The resistance is envisaged around 1,605-1,610 while the support is set at 1,570-1,575. – June 27, 20234
