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 firm start to 2H 2024 by pushing past the 1,590 level to close near the psychological 1,600 level again.
Mild bargain hunting emerged on some of the key index losers in the past few weeks to help it mount the recovery as these stocks rose in tandem with the upsides in most regional indices.
In the broader market, conditions also improved with many lower liners posting decent gains. However, market interest were thinner as traded volumes dipped below 4 billion shares.
The renewed buying interest yesterday – albeit mild – is helping to shore up market confidence again which could help the key index to usher in a firm start to 3Q 2024.
Even so, conditions are still largely unsettled due to the few available catalyst to provide firmer market impetuses.
Although we see further near-term gains that will help the FBM KLCI to sustain its recovery from the recent stock market sell-down, the gains may also be modest with the 1,600 level possibly serving as a key hurdle for now as firmer follow through buying interest is required for the level to be cleared convincingly.
Consequently, we think the key index may loiter within the 1,590 and the 1,600 level for the time being with the other support and resistance levels set at 1,595 and 1,605 points respectively.
Malacca Securities Research
The sentiment on the local front started the 2H 2024 on an upbeat tone with overall indices ending in the positive territory except for the telco and media sector.
Meanwhile, most of the tech giants in the US have rebounded despite the ISM manufacturing PMI (purchasing managers’ index) coming in below expectations.
Going forward, investors will be monitoring (i) remarks from the US Federal Reserve’s chairman Jerome Powell later today; (ii) the FOMC (Federal Open Market Committee) meeting minutes on Wednesday; and (iii) the US non-farm payrolls data due on Friday.
At this juncture, the Fed is projected for one rate cut in 2024.
On the commodity front, Brent crude experienced a short consolidation breakout by charging above US$86/barrel while the gold price range-bound along US$2,330/oz. Meanwhile, CPO (crude palm oil) has started to climb above RM4,000/metric tonne.
The FBM KLCI index ended higher towards the 1,598 level. The technical readings on the key index were, however, negative with the MACD Histogram still in the negative region. Nevertheless, the RSI crossed above 50.
The resistance is envisaged around 1,613-1,618 while the support is set at 1,578-1,583. – July 2, 2024
