BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bursa Malaysia stocks mounted a rebound to start the week, buoyed by last Friday’s strong closing on Wall Street on increasing hopes that the US Federal Reserve will start to trim interest rates in September.
As a result, the FBM KLCI surged back above the 1,620 level on the return of bargain hunting activities that also spread to most liners albeit the FBM ACE index remained in the negative zone.
Market breadth was positive with traded volumes climbing back above 4 billion shares for the day.
The FBM KLCI could still regain further ground over the near-term in tandem with sustained gains among the key global equities recently.
Once again, expectations of an interest rate cut in the US as well as the release of more corporate results will continue to drive sentiments on Bursa Malaysia.
Back home, however, there are still few noteworthy leads and as a result, the upsides could become more modest in the day ahead.
We also do not rule-out quick profit taking activities that could also limit the upsides with the 1,631 hurdle could still be a formidable level to breach for now.
Nevertheless, if the level gives way, the key index could head to the next hurdle at 1,637 points with the supports pegged at the 1,621 and 1,615 levels respectively.
Malacca Securities Research
The sentiment on the local front was positive yesterday as buying interest emerged within sectors related to data centers; the FBM KLCI, FBM70 and FBM Small Cap rebounded.
Meanwhile, the US stock markets ended on a muted tone as investors stayed on the sidelines ahead of key earnings from Microsoft, AMD and Starbucks later tonight.
Also, traders will be monitoring on the two-day FOMC (Federal Open Market Committee) meeting which will dictate the direction of interest rates going forward. As of now, the consensus is expecting a rate cut in September 2024.
In the commodity markets, Brent crude extended its decline below US$80/barrel following rising concerns over China’s demand while gold price ranged between US$2,350-US$2,400/oz. Elsewhere, CPO (crude palm oil) is trending sideways around RM3,900/metric tonne.
The FBM KLCI index ended higher around 1,624 level. However, the technical readings on the key index were mixed with the formation of another negative MACD histogram but the RSI has re-surfaced above 50.
The resistance is envisaged around 1,639-1,654 while the support is set at 1,604-1,609. – July 30, 2024
