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 head south as it slipped to its lowest level in four months.
The selling was in tandem with the weakness in regional markets due to further cuts to the world’s economic growth outlook.
Back home, the possible re-introduction of the GST (goods and Services Tax) also kept sentiments guarded. This resulted in market breadth staying in the negative territory with many lower liners and broader market shares closing in the red.
The key index is still looking frail as it continues to breach successive technical support levels over the past few sessions.
With the buying support appearing insipid, the downside bias remains for the time being and could continue to keep fresh buying interest at bay.
At the same time, there is also a lack of notable leads to entice market players back and this would also preserve the mostly cautious market undertone for longer.
Meanwhile, the gains in key global indices are unlikely to present substantive buying impetuses for Malaysian equities as market players are still awaiting for more clarity before making their next moves.
As such, a rebound, if any, is likely to be mild amid the still frail market undertone. The hurdles are at 1,530 and 1,539 points while the supports are pegged at 1,520 points and the 1,512 level respectively.
Malacca Securities Research
The FBM KLCI remained negative as investors continued to trade cautiously under the interest rate upcycle as well as intensifying inflationary pressure environment.
We expect a range-bound trading on the local bourse prior to a series of economic data releases for the week including Malaysia’s unemployment rate, the European Central Bank’s (ECB) interest rate decision as well as inflation data from China and the US.
Nevertheless, the overnight jump on Wall Street may shed a light on the local bourse, especially in the technology sector.
Commodities-wise, Brent crude traded above US$120/barrel while crude palm oil (CPO) price hovered above RM6,500/metric tonne.
The FBM KLCI breached below the 1,530 support level after a four-day decline. Technical indicators remained mixed as the MACD Histogram has extended a positive bar while the RSI hovered below the 50 level.
The next support is located around 1,500-1,510 while resistance is pegged at 1,570-1,580. – June 8, 2022
