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 rebounded yesterday, closing at the psychological 1,450 level again as bargain hunting emerged on some of last week’s heavyweight losers.
The key index was in the positive territory for most of the day but the upsides were modest as market players continued to be cautious, resulting in market breadth remaining negative.
However, key broader market indices like the FBM Small Cap and ACE Market ended the day higher with traded volumes a fraction higher than Friday’s.
We see the key index remaining largely range-bound as it continues to build up a base around the 1,450 level with a mild upward bias over the near term.
Market players will still be on the look-out for more leads in the form of corporate results in the upcoming peak of the reporting season to gauge the outlook for the rest of the year.
In the interim, fresh buying could still be tentative as the recent run-up has already left valuations at fair levels and this could slow further share price improvements.
As such, the near-term upsides could still be modest with the key index also adjusting from its bout of oversold.
On the upside, the immediate hurdle remains at the 1,455 level, followed by the 1,460 level. The supports, meanwhile, are at 1,445 and the 1440 levels respectively
Malacca Securities Research
Local stock markets ended slightly higher after a two-day pullback as bargain hunting activities emerged on the utilities and telco sectors.
Meanwhile, the rebound in technology stocks from on Wall Street may spill-over towards the technology sector on the local front.
Nevertheless, investors will be watching closely on the results from Nvidia as it may provide more clarity on the market directions going forward.
Meanwhile, back on the local front, we expect the lower liners to extend its rebound move amid the on-going corporate earnings releases.
Commodities-wise, Brent crude stabilised above US$84/barrel while crude palm oil (CPO) prices rose above RM3,900/metric tonne.
The FBM KLCI rebounded after a two-day pullback. Technical indicators are still mixed with the MACD Histogram having extended another bar in the negative territory while the RSI is hovering above 50.
The key index may extend the rebound towards 1,460-1,465 resistance zone. Meanwhile, the support is located around 1,430-1,440. – Aug 22, 2023
