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 more than regained traction at the start to the week to climb to nearly the 1,630 level at the close, buoyed by the strong gains in the US markets at last week’s close.
The upsides were very much aided by banking and gaming stocks as they saw renewed buying interest, offsetting the weak China 2Q 2024 GDP (gross domestic product) performance.
The broader market stocks also gained ground as gainers beat losers by a wide margin. At the same time, traded volumes also rose by 17% for the day.
With the key index tethering near its three-year high, the market’s momentum is building up and could see the key index making a pass at the recent high of 1,632 points even as this could still prove to be a formidable level to clear.
As it is, the market’s undertone is still holding firm and appears conducive for the key index to head higher over the near-term, premised on the continuing buying interest from foreign funds that are increasing their position in Bursa Malaysia stocks following the recent JP Morgan upgrade.
In addition, the positivity among key global equity indices is also helping to shore up market confidence further.
With the build-up of momentum, we see the FBM KLCI attempting to clear the 1,632 hurdle and if successful, the next targets are set at 1,636 and 1,642 points respectively. On the other hand, the supports are at the 1,620-1,623 levels and at 1,615 points respectively
Malacca Securities Research
The FBM KLCI retested the 1,632.79-level intraday but managed to close higher for the session.
Meanwhile, both the FBM70 and FBM Small Cap traded positively as buying interest was observed across most sectors.
Major US indices closed higher while the Russell2k index surged further after the US Federal Reserve’s commented that the FOMC (Federal Open Market Committee) would not wait for inflation to reach its 2% target before lowering rates.
Investors will be watching US retail sales today with industrial production data released on Thursday and unemployment claims on Friday.
On the commodity markets, Brent crude trades slightly below US$85/barrel amid demand concerns while gold price trades above US$2,420/oz. Elsewhere, CPO (crude palm oil) trades below RM3,900/metric tonne.
The FBM KLCI index ended firmly towards the 1,629 level. The technical readings on the key index were positive with the MACD histogram having formed another positive histogram bar and the RSI continues to trend higher above 50.
The resistance is envisaged around 1,644-1,649 while the support is set at 1,609-1,614. – July 16, 2024
