BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more selling on Bursa Malaysia yesterday as most stocks extended their selling streak to head to a new four-month low.
In the process, the FBM KLCI surrendered its intra-day gains late in the afternoon session to close in the red.
The weakness among healthcare stocks were the main contributor to the FBM KLCI’s decline on expectations of subdued earnings from glove makers.
Market breadth was also decidedly negative but traded volumes rose 25% to jump past 3 billion shares mark.
There remains little reprieve for key index stocks as buying interest is still weak amid the on-going geopolitical and economic concerns that are seeing few signs of abating anytime soon.
This is preserving the mostly cautious market undertone and could also lead to more players taking to the sidelines.
With sentiments muted, the FBM KLCI is unlikely to make much headway due to the lack of direction.
As a result, the key index is likely to continue drifting with a downside bias that may see it re-visiting the 1,520 level which is also its next support.
If this level fails to hold, it could exacerbate the already weak market sentiments and could even retreat to the next psychological support of the 1,500 level. In the meantime, the hurdles are at 1,531 and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI lost ground in the final hour sell-off as investors struggled to find a floor amid concerns over elevated inflation and costs pressure.
Given the slight negative tone on Wall Street, technology stocks will be under pressured once again.
Meanwhile, the elevated Brent crude price which is trading above US$123/barrel coupled with the trucker strike in South Korea could further threaten the global supply chain disruptions while adding more risks to global inflation.
Having said that, we believe there will be positive trading activities within the recovery-themed sectors as we transition to the endemic phase. Meanwhile, crude palm oil (CPO) is traded around RM6,450/metric tonne and is within its uptrend movement.
The FBM KLCI finished at intra-day low, dragged by final-hour sell-off. Technical indicators turned negative with the MACD Histogram having fallen below the zero line while the RSI continued to stay below the 50 level. Immediate support is pegged at 1,500-1,510 while resistance is set around 1,570-1,580. – June 9, 2022
