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 traded mostly in a tight range but ended the day on a losing note in tune with the weakness in regional markets.
As a result, mild profit taking activities took hold on some of the big movers a day earlier. For the most part, conditions were subdued as market participation remained thin due to the lack of new leads.
The performance among broader market shares were also subdued with the total losing stocks gaining an upper hand against winning stocks.
Heading into the final trading day of 1H 2022, there is little change to the market’s near-term outlook with conditions to stay morbid, under-whelmed by continuing concerns over the state of the global economy for the remainder of the year.
With the prognosis that the challenging economic environment to persist into 2H 2022, much of the ongoing market trend will be carried over and this could leave market conditions listless for longer.
In the interim, however, the key index will attempt to find further solace from its recent sell-down and to hold around the 1,450 level for now but if this fails, the supports will be lowered to 1,440 and 1,430 points respectively.
On the upside, the hurdles are pegged at 1,461 and 1,473 points respectively.
Malacca Securities Research
The FBM KLCI dipped following three straight winning sessions, taking cue from the negative regional markets. The local bourse may see further volatility amid the quarter-end rebalancing activities.
Meanwhile, the new ceiling price for chicken to be set at RM9.40/ kg may be mildly positive for the poultry players albeit the capping price is only 50 sen higher than the previous level.
Commodities-wise, Brent crude oil price dropped to US$116/barrel mark while gold price extended its decline amid firmer US dollar.
The FBM KLCI booked marginal losses after a choppy session, closing just around its daily EMA9 level. Technical indicators remained mixed as the MACD Histogram has extended a positive bar while the RSI hovered below the 50 level.
Resistance is set along 1,480-1,500 while the next support level is pegged at 1,400-1,430. – June 30, 2022
