BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks made a strong up move just prior to the National Day holidays as foreign buying interest stayed firm to haul the key index to the 1,510 level which was also in tune with the region’s gains.
Oil & gas (O&G) related stocks were the day’s big movers following the rise in oil prices back above the US$100/barrel level.
Lower liners and broader market shares also made gains as gainers were still ahead of losing stocks with traded volumes rising nearly 50% for the day.
There appears to be firm support for key index stocks with foreign funds still making a beeline into Malaysia equities, possibly in anticipation of the next general election to be announced soon.
Their support will sustain the FBM KLCI’s upsides even as the market’s undertone could remain guarded due to the lingering concerns over the state of the global economy as interest rates are likely to be raised further.
Under the prevailing environment, the key index is likely to remain firm even as profit taking may emerge after the past few sessions’ upside and the still challenging overseas markets. Back home, the end of the results reporting season will see fewer leads for market players to follow.
On the downside, the 1,500 level will serve as the immediate support followed by the 1,495 level while the resistances are at 1,516 and 1,520 points respectively.
Malacca Securities Research
The FBM KLCI extended its winning streak, bucking the negative performance on Wall Street.
While the key index managed to trade positively against the global stock markets, investors should remain cautious with the ongoing increased volatility environment attributed to the hawkish tone by the US Federal Reserve.; we expect the noise to continue until the next CPI (consumer price index) data release and FOMC (Federal Open Market Committee) meeting.
Commodities-wise, Brent crude oil price trended lower around US$96/barrel mark due to fears over global economic slowdown. Meanwhile, crude palm oil (CPO) prices hovered above RM4,100/metric tonne.
The FBM KLCI recouped all its earlier losses and ended at intraday high, climbing above its daily EMA120 level. Technical indicators remained mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50.
Resistance is pegged along 1,530-1,550 while the support is envisaged around 1,450-1,465. – Sept 1, 2022
