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 broke its streak of losses to end the day with minute gains as mild bargain hunting emerged on some of the heavyweights.
Overall market conditions, however, were still on the cautious side as losers were still ahead of gaining stocks for the day amid the still mixed market trend.
As it is, there were still few noteworthy leads for market players to follow, thus further fortifying the mostly indifferent market condition.
After breaking its downward streak, however, the FBM KLCI could be attempting to find some stability and to reverse its recent weakness spell.
Although the market is still devoid of catalysts, the rebound will be boosted by continuing mild bargain hunting activities that would help to provide the much-needed lift to the market.
At the same time, the overnight recovery on Wall Street could also provide some added impetus for stocks on Bursa Malaysia to mount a rebound.
However, it remains to be seen how firm the recovery would be due to the prevailing low market participation and lack of sustainable catalysts.
Therefore, the rebound may still be anaemic with the 1,496 level serving as the immediate resistance while the 1,500 level remains the formidable level to clear for now.
The supports, on the other hand, are at 1,490 points which is its immediate support, followed by the 1,486 level.
Malacca Securities Research
The FBM KLCI rebounded from a four-day slide, outperforming most of the regional markets as the industrial products & services and utilities heavyweights led gains.
We believe the overall sentiment will turn more positive with the rebound on Wall Street overnight.
Meanwhile, Bank Negara Malaysia (BNM) and the European Central Bank’s interest rate decision will be in focus today. We believe the market is pricing in a 25-basis[1]point overnight policy rate (OPR) hike at this juncture.
Commodities-wise, Brent crude price declined, trading at around US$88/barrel as the market expects a slower demand from China. Meanwhile, crude palm oil (CPO) traded above RM3,700/metric tonne.
The FBM KLCI pared earlier losses and closed in the positive territory but the key index continued to stay below its EMA60 level. Technical indicators are still mixed as the MACD Histogram extended a negative bar while the RSI crossed above 50.
Resistance is at 1,510-1,530 while the support is located at 1,465-1,480. – Sept 8, 2022
