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 extended its downward streak for a seventh consecutive session yesterday as it closed near the 1,580-point support level.
Once again, foreign selling was prevalent to send the key index to its lowest level since early May.
Selling activity was also prevalent among the broader market shares as retail players were locking-in their recent gains which contributed to total losers overwhelming gainers by more than a 2-to-1 margin.
There remains little to suggest that a recovery is in sight after the key index failed to find support at its successive technical support levels.
As a result, market sentiments remain unsettled with the continuing lack of new leads could see more market players opting to lock-in some of their profits ahead of the half-year closing at the end of the week.
Even so, the FBM KLCI would have made decent gains in 1H 2024 while the recent consolidation phase may have also provided some fresh bargain hunting albeit it has yet to materialise.
Therefore, the near-term market conditions are likely to stay wary with the mixed performance of global equities could also further leave market conditions subdued for now.
Further near-term consolidation on the FBM KLCI could sent it to the immediate support at the 1,580 level. Further below, the support is at 1,575 points while the hurdles are at 1,590 and 1,595 points respectively.
Malacca Securities Research
The FBM KLCI ended lower for the seventh session as profit taking activities were seen on YTL-related heavyweights.
Meanwhile, Wall Street rebounded led by NVIDIA despite some funds rotated out earlier on Monday.
We opine that the market is still banking on the AI (artificial intelligence)-fuelled rally as rate cuts catalyst expectations have faded.
Also, we think the AI rally is more meaningful with strong earnings unlike the dot-com bubble which was not supported by fundamentals.
This week, traders will be monitoring the PCE (personal consumption expenditure) data for more clues on the US Federal Reserve’s interest rates direction.
On the commodity markets, Brent crude declined below US$85/barrel while gold price fell below US$2,330/oz. Meanwhile, CPO (crude palm oil) traded negatively below the RM3,900/metric tonne level.
The FBM KLCI index ended lower dipping to the 1,585 level. The technical readings on the key index were negative with the MACD Histogram forming another negative bar while the RSI dropped below 50.
The resistance is envisaged around 1,600-1,605 while the support is set at 1,565-1,570. – June 26, 2024
