BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the key index was left to drift as it was unable to gain traction to make a definitive move amid the still directionless trading environment.
For most part, the prevailing mixed-to-lower market conditions resulted in market breadth staying negative and investor interest on the thin side, hovering just above the 2 billion shares mark.
Plantation stocks were the main movers while technology stocks were again the major losers on reports of a weaker semiconductor sector outlook.
There is no change to the immediate market outlook with Malaysian equities to remain subdued, hampered by the lack of catalysts that could leave them listless for longer.
Market conditions could also become more cautious as investors stay guarded until the next interest rate decision in the upcoming Bank Negara Malaysia (BNM) meeting where the central bank widely tipped to lift interest rates by another 25 basis points (bps) to 2.5%.
In the interim, the FBM KLCI may still consolidate further on concerns over the slowing global economic conditions that is still affecting sentiments.
However, selling is likely to remain modest for now as there appears to be some mild bouts of supports that could keep the key index near the psychological 1,500 level.
The immediate support is at 1,486 points followed by the 1,480 level. Apart from the 1,500 level, there are resistances at the 1,490 and 1,495 levels.
Malacca Securities Research
The FBM KLCI closed marginally lower, taking cue from the mixed regional markets amid anxiety over energy crisis in Europe as well as ongoing China’s lockdown to curb COVID-19 spread under the “zero-COVID” policy.
Moving forward, we opine that global markets should stay in a consolidation mode, at least until the next CPI (consumer price index) data.
Meanwhile, the local bourse may turn their focus to the energy sector as OPEC decided to trim production for October 2022 – a move that has driven the Brent crude slightly above US$95 per barrel. Elsewhere, crude palm oil (CPO) price remained below RM4,000/metric tonne.
The FBM KLCI remained below the 1,500 level for the third straight session. Technical indicators turned negative as the MACD Histogram falls below zero while the RSI stayed below 50.
The resistance is pegged along 1,510-1,530 while support is located at 1,480, followed by 1,465. – Sept 6, 2022
