BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Mild bargain hunting allowed the key index to re-test the 1,470 level yesterday as Malaysian equities followed the region’s lead in heading higher and to resume its upside.
Much of the buying were from foreign buyers with local institutions and retail players being the net sellers.
However, market breadth was positive as most of the broader market shares and lower liners, particularly the beaten down technology stocks, regained traction even as traded volumes remained thin.
The near-term positivity looks to continue, buoyed by the sustained uptick in global equities after the US Federal Reserve raised interest rates as expected and hinted of slower interest rate hikes ahead as well as dispelling the US economy is in recession.
The upsides in global equities will also help to shore up the local equity market sentiments that could give the impetus for the current upsides to continue for the time being.
The positivity will also allow Malaysian equities to temporarily cast aside the prevailing market risk as they mount a more meaningful recovery from their most recent sell-down.
The key index could now target the 1,472 level before heading to the ensuing hurdles at the 1,480-1,483 levels. The supports, meanwhile, are set at 1,460-1,464 and the 1,455 levels respectively.
Malacca Securities Research
The FBM KLCI reversed earlier losses to end in the positive territory prior to the US Fed’s interest rate decision as concerns over rate hikes have been priced in.
We believe the recent rebound should continue as the comments by US Fed Chairman Jerome Powell have eased investors’ concerns over the interest rate hike outlook going forward.
The positive momentum on Wall Street is likely to spill over to the regional and local bourses.
Commodities-wise, Brent crude rose above US$106/barrel while crude palm oil (CPO) was traded above RM3,850/metric tonne.
The FBM KLCI rebounded as the key index pared mild losses in the morning session and closed as a hammer.
Technical indicators remained in a recovery mode as the MACD Histogram has extended a positive bar while the RSI hovered above 50. Resistance is located along 1,480-1,500 while the support is set at 1,400-1,410. – July 28, 2022
