BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
The FBM KLCI started the week virtually unchanged after it managed to claw back most of its intraday losses amid the continuing profit taking on some of the recent big movers.
There were late buying on selected banking and telco stocks that aided the recovery. Conditions in the broader market, however, were more sanguine after the conclusion of the state elections with a noticeable pick-up in market activities that also allow gainers to outgun losers for the day.
With no major surprises in the recently concluded state elections, market conditions has remained relatively calm and this is helping the key index to preserve most of its recent gains.
In the same vein, it has also allowed the key index to undergo a sideway consolidation that is allowing for the recent gains to be absorbed, particularly with foreign funds still providing much of the buying support.
For now, we see the sideway trend persisting as there are still few signs of a change in the trend as valuations have caught up after the recent gains.
Market players will instead be on the look-out for the upcoming stream of corporate results to gauge their prospects for the remaining half of the year.
Therefore, the hurdles remain at the 1,460-1,462 levels and at 1,470 points respectively. The supports, on the other hand, are at 1,444 points and the 200-day moving average line of 1,437 points.
Malacca Securities Research
Given the outcome of the Malaysia state elections was within expectations, the local bourse did not see further significant selling pressure and ended flat; we expect the overall sentiment will be able to trade higher over the near to mid-term.
Also, with the positive performance on Wall Street, we reckon investors may look into the technology stocks on the local front.
On a brighter note, we have observed buying interest shifting towards the small and mid-cap stocks.
Looking ahead, investors may keep a close tab on a slew of China economic data (retail sales, industrial production, and unemployment rate) to gauge the health of the second world largest economy.
Commodities-wise, Brent crude stabled above USD86/barrel while crude palm oil (CPO) prices defended the RM3,700/metric tonne mark.
The FBM KLCI formed another hammer candle after recouping most of its intraday losses. Technical indicators stayed positive as the MACD Histogram extended another positive bar while the RSI is above 50.
The immediate resistances are located along 1,480-1,500 while the support is pegged around 1,420-1,440. – Aug 15, 2023