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 rebounded for a second day, taking cue from the gains on Wall Street a day earlier as U. equities also broke their downward streak.
Bargain hunting was still prevalent among the recent big losers on the key index, thus allowing the benchmark index to close above the 1,590 level at the close after a slow start to the day.
The broader market also regained further ground with firmer gains as bargain hunting returned to allow total gainers to dominate losers nearly on a 4-to-1 ratio.
After recouping most of the recent steep falls, market conditions appear firmer and could now be attempting to find further stability.
The market could also be looking to secure the 1,600 level again amid the improve sentiments but further upsides could be more modest following the past two day’s recovery from the knee-jerk selling.
There could still be tentativeness after the recent sell-off as investors are still unsure of the market’s direction and conditions which could still stay unsettled for longer, thus slowing down the recovery pace as the FBM KLCI approaches the 1,600-resistance level.
There is an interim hurdle at the 1,595 points while the supports are pegged at the 1,595 level and at 1,583 points respectively.
Malacca Securities Research
The local market extended its rebound as the Bank of Japan (BOJ) commented that it will only increase interest rate in a less volatile market.
Most sectors rallied further except for plantation amid falling crude palm oil (CPO) prices.
Meanwhile, Wall Street snapped a two-day rebound as profit-taking activities emerged amid softer earnings from tech-related stocks.
Although the market remains concerned over the yen reverse carry trade incident, we expect buying interest to build up in view of less hawkish BOJ statement.
Additionally, traders will be monitoring the US unemployment claims to be released tonight for more clarity on economic activities.
In the commodity markets, Brent crude spiked amid rising geopolitical tension in the Middle East while gold price hovered below US$2,400/oz. Elsewhere, CPO price remains below RM3,800/metric tonne.
The FBM KLCI index extended the rebound towards 1,591 level. The technical readings on the key index were negative with the MACD histogram forming another negative histogram bar and the RSI dropped below 50.
The resistance is envisaged around 1,606-1,611 while the support is set at 1,571-1,576. – Aug 8, 2024
