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 started the week with minute gains that came at the end of the day where it was mostly in the red throughout the session.
For the most part, however, the market lacked conviction as there were few leads for market players to follow.
This resulted in the broader market and lower liners losing pace with losing stocks dominated gaining ones.
The lacklustre market conditions were also manifested by the thinning traded volumes that was just at 2 billion shares for the day.
We maintain our view that market conditions are still largely insipid as follow-through buying on the recent market recovery is still lacking.
As it is, market sentiments are mostly indifferent as a definitive market direction is still absent and this would leave it directionless for longer.
Therefore, the recent gains are largely seen as an adjustment from its oversold conditions and would now require new impetuses to head higher.
The near-term market outlook points to continuing cautiousness even as it is likely to hold steady for the time being as market players await for the US Federal Reserve’s interest rate decision where the street is expecting a 75 basis points (bps) hike.
On the downside, the supports remain at the 1,460 and 1,450 points respectively while the resistances are at the 1,472-1,476 levels and at 1,480 points.
Malacca Securities Research
The FBM KLCI outperformed its regional peers as the key index gained momentum in the final trading hour, supported by influx of foreign funds.
Although the market sentiment has been improving over the past few sessions, we reckon that investors may remain cautious ahead of the US Fed’s interest rate decision and could take a breather in view of the mixed performances on Wall Street overnight.
Commodities-wise, both the Brent crude and crude palm oil (CPO) prices trended mildly higher, trading above US$105/barrel and RM3,700/metric tonne respectively.
The FBM KLCI climbed for the fourth straight session with the key index having formed a hammer candle. Technical indicators remained positive as the MACD Histogram has extended a positive bar while the RSI hovered above 50.
Resistance is envisaged along 1,480-1,500 while the support is pegged around 1,400-1,410. – July 26, 2022
