BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the key index succumbed to renewed selling pressure yesterday by surrendering all the gains it attained a day earlier.
The pullback comes amid the decline in most regional indices as the market reacted negatively to the spate of weak corporate earnings from some of the world’s biggest companies.
However, the FBM KLCI managed to stay above the 1,620 level at the close albeit selling activity being extended to the lower liners which caused total losers outpacing gainers for the day.
The near-term market volatility is likely to prevail for now with few noteworthy leads for market players to follow.
The spate of weak corporate results from US megacaps and the ensuing sell-off on Wall Street could further dampen market sentiments on the FBM KLCI as well.
As such, the key index is set to consolidate further with more market players likely to trim their positions ahead of more results to be released, including those on Bursa Malaysia.
This also means that the 1,620 level is under threat again due to the weaker sentiments that could send more market players to the sidelines. Below the 1,620 level, there are supports at the 1,613 and 1,606 levels. On the flipside, the resistances are at 1,625 and 1,630 points respectively.
Malacca Securities Research
After one day of rebound, selling pressure re-emerged, causing the FBM KLCI, FBM70 and the FBM Small Cap indices to end in negative territory, dragged down by industrial products and construction-related stocks.
Led by a tech-driven sell-off, the US stock markets had their worst day since December 2022 with the S&P 500 and Nasdaq plunging 2.32% and 3.64% respectively following the earnings releases of Alphabet and Tesla.
Additionally, traders were locking in profits after an AI (artificial intelligence)-led rally that might be overheated with a rotation into small-cap stocks being observed.
On the economic data front, investors will be watching the US GDP (gross domestic product) data and unemployment claims that will be released tonight.
In the commodity markets, Brent crude traded near the US$81/barrel level while gold price remained around US$2,400/oz. Elsewhere, CPO (crude palm oil) has slightly retraced below RM 4,000/metric tonne.
The FBM KLCI index closed lower around the 1,621 level. The technical readings on the key index were mixed with the MACD histogram having turned negative but the RSI continues to stay above 50.
The resistance is envisaged around 1,636-1,641 while the support is set at 1,606-1,620. – July 25, 2024
