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 continues to be northbound, heading closer to the 1,400 resistance on sustained bargain hunting of selected index linked stocks and energy-related stocks following a better-than-expected industrial production index (IPI) reading.
It also extended the upward streak for a fourth consecutive session that was also evident among the lower liners and broader market shares to keep market breadth in the positive territory. Traded volumes, meanwhile, were little changed from a day earlier.
Near-term market conditions remain sanguine with the calmer market conditions to provide the much-needed impetus for stocks on Bursa Malaysia to nudge out of its range bound trend despite little change to its fundamental outlook that is still subjected to the vagaries of slower global growth and lacklustre corporate earnings outlook.
Nevertheless, the bouts of bargain hunting should be preserved after the US reported further easing in their inflation that should also aid the local bourse to extend its upside and to re-test the 1,400 level which has proven to be a significant hurdle for the past two months.
If this level is cleared, the resistances are lifted to 1,406 and 1,411 points while the supports are at 1,395 and 1,390 points respectively.
Malacca Securities Research
The FBM KLCI remained upbeat as the key index is now a hair away from the 1,400 psychological level on the back of the upbeat economic data.
Gains were also driven by foreign funds that have turned into net buying position for the first time in seven trading days.
The lower liners are also performing better on the back of the positive market sentiment as of late which may have attributed to rotational play which is supported by broad-based recovery tune amid rising commodities prices.
Elsewhere, the softer US inflation data may provide near term impetus for further upsides in our view. Commodities-wise, Brent crude surged above US$80/barrel while crude palm oil (CPO) hovered above RM3,900/metric tonne.
The FBM KLCI formed another bullish candle after lingering mostly in the positive territory as the key index cement its position above EMA20. Technical indicators stayed positive as the MACD Histogram formed another positive bar while the RSI hovered above 50.
The FBM KLCI may likely surge above 1,400, hence the next resistance will be set along 1,413-1,430 while the support is pegged around 1,370. – July 13, 2023
