BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities mounted a long overdue rebound yesterday, taking cue from the positivity among regional indices that saw the emergence of bargain hunters on many of recently beaten down stocks, particularly from foreign funds.
On the key index, glove maker and energy stocks reversed their recent downward trend to emerge as the top movers for the day.
On the broader market, many lower liners also mounted a rebound to help gainers to outpace losers for the day.
There is a stronger chance of the rebound sustaining this time around as the market is already at a deeply oversold condition.
Bargain hunting has emerged which could provide the much-needed impetus for the recovery to continue over the near term.
At the same time, the recovering global equities markets could also provide an additional momentum for the recovery to sustain among Bursa Malaysia stocks to extend to a second day.
With the 1,450-level cleared yesterday, the rebound could see the key index re-testing the 1,460-1,470 levels over the near term.
Thereafter, the next hurdle is at the 1,480 level while the 1,450 level will now serve as the immediate support followed by the 1,441 level.
Malacca Securities Research
Overall, the sentiment has improved across the regional markets which has enabled the FBM KLCI to rebound from its 52-week low.
Moreover, following the strong rebound of over 2% on Wall Street overnight, the local bourse may see further recovery supported by bargain hunting activities.
We believe most of the sectors that have been bashed down earlier should gain traction at least for the near term.
Nevertheless, investors are still weighing on the risk of recession arising from global inflation, hence traders may adopt a sell into strength strategy.
The FBM KLCI rebounded off its 52-week low as the key index closed above its previous support at 1,450.
Technical indicators remained negative but showed improvement as the MACD Histogram is recovering towards zero while the RSI is seeing a cross above the oversold region.
Support is pegged along 1,430-1,450 while the resistance is located at 1,480-1,500. – June 22, 2022
