BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The downtrend remains unabated on Bursa Malaysia with most stocks seeing selling pressure again to start of the week as the FBM KLCI headed to its lowest level in two years.
The decline was also in tune to the weakness in regional peers on continuing concerns over the state of the global economy that faces multiple threats.
Energy stocks was the day’s big losers with total losers again overwhelmed gainers by a wide margin as most lower liners and broader market shares saw sustained selling.
With concerns over the global economy still dominating investor sentiments, the near-term outlook remains abysmal as market players are still wary of its direction.
As it is, there are still few suggestions that the ongoing market impediments have lifted, and these concerns will continue to leave investor confidence at the low end for longer.
The key index’s dip below the 1,450 level is also leaving it increasingly precarious as market supports seems to be evaporating.
Although the FBM KLCI is already in an oversold position, there are still few signs of a rebound as yet. In any case, any rebound could be mild as buying support remains light for the time being.
The supports are now at 1,437 and 1,428 points while the resistances are at 1,450 and 1,460 points respectively.
Malacca Securities Research
The FBM KLCI extended losses amid mixed performance on regional bourses amid global recession worries.
However, we believe stocks on the local bourse are oversold and could be due for bargain hunting opportunities.
Nevertheless, the overall market sentiment should remain challenging in the near term given prospect of few more rounds of rate hikes, hence any rebound might be short-lived.
Brent crude price has declined after hitting the range around US$121/barrel and is currently hovering around US$115/barrel due to recession concerns while crude palm oil (CPO) traded around RM5,000/metric tonne as the market expects normalising supply following Indonesia’s strategy to speed up shipments and lifting last month’s ban on exports.
The FBM KLCI breached the immediate support at 1,450 after the whole stretch of selling pressure. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI continues to thread below 30.
The next support level is at 1,430 while the resistance is pegged along 1,476-1,500. – June 21, 2022
