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 continues to make headway albeit minute as bouts of buying interest remained to help lift the key index further.
Overall conditions, however, were still broadly directionless as market breadth was still on the negative side with most broader market shares ended the day lower due to the lack of fresh leads.
Among gainers, technology-related stocks were the main outperformer in tune with their global peers’ performances.
We see near-term market conditions staying mostly indifferent as there is still a dearth of convincing leads to entice increased participation into the market.
Correspondingly, there is also little selling pressure and this should still allow for much of the YTD (year-to-date) gains to be preserved.
With the market undertone still holding steady coupled with sustained gains on key global equity markets of late, there could be further gradual upsides over the near-term with the key index to close-in on its next hurdle at the 1,620 level.
As it is, there could be more nibbling on some of the recent big losers that should also help the key index to hover close to its year high levels. Above 1,620 points, the ensuring resistance is at 1,625 points while the supports are at 1,610 and 1,605 points respectively.
Malacca Securities Research
Both the FBMKLCI and FBM70 managed to close higher but the Small Cap index ended lower as profit taking activities were noticed across the board.
On Wall Street, the S&P500 and Nasdaq indices traded higher, charting new territories led by technology-related stocks as US Federal Reserve chairman Jerome Powell expressed concern that holding interest rates higher for longer may dampen economic growth.
Additionally, traders will be monitoring the upcoming CPI (consumer price index) and PPI (producer price index) data this week in order to understand the direction of the Fed going forward.
On the commodity markets, Brent crude settled slightly below US$85/barrel amid demand concerns despite the decline in oil inventories last week while gold price traded firmly above US$2,350/oz. However, CPO (crude palm oil) has fallen five-day consecutively to trade below RM4,000/metric tonne.
The FBM KLCI index ended marginally higher towards the 1,614 level. The technical readings on the key index were positive with the MACD histogram forming another positive bar while the RSI surged above 50.
The resistance is envisaged around 1,629-1,634 while the support is set at 1,594-1,599. – July 10, 2024
