BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities remained on the ascend yesterday with the FBM KLCI breaching the 1,500 level to close at its highest level in six weeks as Malaysian equities continue to follow global indices in mounting a recovery from their steep 1H 2022 declines.
The positivity was widespread with many lower liners and broader market shares also making headway that helped market breadth to stay positive.
However, the participation rate was still relatively thin as follow through buying remains low.
Although the key index’s recent run-up is encouraging to break the dour spell, the gains are looking increasingly overdone after its near 100-point gain over the past two weeks.
This could slow further ascend on the key index albeit a sharp pullback is still not on the cards yet.
A period of consolidation could also materialise which would also be welcomed for the recent gains to be digested and for the market to build up a base.
As such, we see increased choppiness with mild profit taking emerging that could leave the market hesitant over the near term with the 1,500 level to serve as the immediate support.
Thereafter, the supports are at 1,495 and the 1,490 levels respectively. The resistances, on the other hand, are at the 1,505-1,510 levels, followed by 1,520 level.
Malacca Securities Research
The FBM KLCI stayed on an upbeat note along with most of the regional peers as the key index crossed above the psychological 1,500 level.
While profit taking activities may occur to digest the recent gains, we continue to expect a relatively positive market undertone moving forward as investors could be shrugging off the concerns over aggressive interest rate hikes in the US.
Commodities-wise, crude oil tumbled, trading around the US$100/barrel mark amid renewed demand concerns while crude palm oil (CPO) price declined but still hovering above RM4,000/metric tonne.
The FBM KLCI breached the key 1,500 level, marking its fourth consecutive session of gains. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI is trending positively above 50.
The next resistance is pegged at 1,530 while the support is set along 1,410-1,460. – Aug 2, 2022
