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 lost more ground yesterday as market players were spooked by Hartalega Holdings Bhd’s weak results that highlighted the continuing challenges for glove makers.
Conditions elsewhere were also morbid with most stocks in the red amid the lack of interest. Technology stocks were the big losers for the day but plantation and transport-related stocks bucked the lower trend.
Consequently, losers were ahead of gainers on more than a 2-to-1 ratio while traded volumes thinned further.
However, Wall Street’s overnight jump – brought about by the better-than-expected US inflation reading – could bring some reprieve to Malaysian equities by allowing them to mount a rebound to break the streak of recent losses.
The inflation reading is providing hope that the US Federal Reserve could pause its rate hikes in the coming months.
Back home, the improved market sentiments could allow for the return of bargain hunting activities on some of recently beaten down heavyweights.
Depending on the fresh buying strength, the potential upsides could also allow the key index to re-test the 1,500 level.
In the interim, there is a resistance around the 1,495 level while above the 1,500 level, the next hurdle is at 1,510 points. The supports, meanwhile, are at 1,490 and 1,480 points respectively.
Malacca Securities Research
The FBM KLCI slipped as investors dumped selected glove, technology and banking stocks prior to the released of the US CPI (consumer price index) data.
With the CPI numbers came in below the consensus figure, we believe the positive sentiment from Wall Street may spill-over to the local front, especially within the technology sector.
Investors should expect a lower scale of interest rate hikes moving forward from the US Fed. This should provide a decent window of opportunity to at least until the next CPI which will be on Sept 13.
On the commodity markets, Brent crude price rebounded marginally, trading around US$97/barrel while crude palm oil (CPO) remained above RM4,150/metric tonne.
The FBM KLCI closed lower around its daily EMA9 level amid increased selling pressure. Technical indicators, however are mixed as the MACD Histogram turned mildly below zero while the RSI hovered above 50.
Resistance is located along 1,530-1,550 while support is envisaged 1,460-1,480. – Aug 11, 2022
