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 registered further gains in tandem with the upsides in global indices that were buoyed by prospects of an agreement in the US debt ceiling negotiations.
However, market interest was still largely tepid that resulted in the key index only posting minor gains. Market breath was still negative with traded volumes only improved slightly.
Nevertheless, Bursa Malaysia’s sector indices were higher as bargain hunting emerged on some of the recent losers with technology stocks emerged the biggest winner.
The calmer market conditions could encourage further near-term upsides and allow for the key index to sustain its recovery from its most recent pullback.
The upsides could also provide the key index some near-term stability ahead of the last trading session of the month and to find support at above the psychological 1,400 level.
However, with buying interest still thin, the upsides could also remain modest with the key index potentially just nudging higher to the around the 1,408-1,410 levels for the time being.
While the on-going results reporting season is heading to its conclusion, it has mostly failed to provide the much needed buying impetus. Hence Malaysian equities are likely to continue drifting for the most part for now. Below the 1,400 support level, the other support remains at 1,395 points.
Malacca Securities Research
The FBM KLCI closed with minor gains as bargain hunting activities emerged amid easing worries following the tentative deal formed over US debt ceiling. Investors may see further relief in the market in anticipation of the lifting of US debt ceiling this weekend.
Meanwhile, higher-than-expected US consumer spending which suggested the economy remains resilient has kept the Brent crude price on a recovery move, hovering above US$77/barrel. Meanwhile, crude palm oil (CPO) price hovered above RM3,500/metric tonne.
The FBM KLCI booked marginal gains after oscillating between the positive and negative territory as the key index defended psychological 1,400 level. Technical indicators however, remained negative as the MACD indicators extended a negative bar while the RSI hovered below 50.
Support is pegged along 1,370-1,390 while the resistance is set along 1,440-1,460. – May 30, 2023
