BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index shed its intraday gains to end the day with minor losses as profit taking emerged late in the session to leave it in the red for a second straight day.
Market conditions, for the most part, were relatively subdued with few leads and this left the mild profit taking to take hold towards the end of day.
Trades in the broader market were also lacklustre with most of these stocks closing lower and market breadth was decidedly negative. The day’s volume also slipped nearly 50% from last Friday.
We see market conditions remaining subdued due to the directionless market environment that will continue to leave most players on the sidelines.
Concerns over the upcoming state elections, risk of further interest rate hikes and slower global economic prospects will keep sentiments frayed for longer, hence leaving the key index to drift further.
Furthermore, global market conditions are also looking insipid and their recent consolidation could also keep the local equity market sentiments in check for longer.
Consequently, the FBM KLCI is likely to dither and the 1,390 level remains vulnerable as the window dressing activities come to an end.
The immediate supports remain at 1,385-1,387 points, followed by the 1,380 level. The resistances also remain at 1,395 and the psychological 1,400 level.
Malacca Securities Research
The FBM KLCI pared all its intraday gains and slid into the negative territory amid weaknesses across the regional markets.
The local bourse may endure further volatility as Wall Street continues to swing lower while investors monitor the (i) developments in Russia, (ii) the potential interest rate hikes in the upcoming July US Federal Reserve meeting which may create more economic uncertainties as well as (iii) the upcoming US 1Q 2023 GDP (gross domestic product).
Commodities-wise, Brent crude traded above US$73/barrel while crude palm oil (CPO) price rallied above RM3,600/metric tonne.
The FBM KLCI inched lower to close just above its daily EMA9 level after reversing all its intraday gains. Technical indicators were remained mixed as the MACD Histogram extended a positive bar while the RSI is hovered below 50.
Support is monitored along 1,370 while the resistance is pegged along 1,400-1,440. – June 27, 2023
