BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
FBM KLCI listed stocks made a strong push in the afternoon session after a relatively subdued morning session when the key index was mostly range-bound.
The gains were seen as window dressing activities ahead of the half-year closing with most bellwether stocks making headway, particularly oil and gas (O&G) stocks.
Conditions in the broader market were mixed although gainers still outpace losing stocks for the day. Still, market interest was thin as traded volumes remained on the low side.
Despite yesterday’s upsides, there is no change to the near-term market outlook as it will continue to look indifferent.
Yesterday’s gains were mostly window dressing and is unlikely to be sustained given that the prevailing global economic concerns are still affecting both the near term and the longer-term equity market outlook.
Therefore, quick profit taking is a possibility as there are few noteworthy leads to lift the key index higher.
This could also see the FBM KLCI retreating from the 1,450 level as there is still a lack of follow-through buying interest on the lack of fresh leads.
The other supports are at the 1,440-1,443 levels while the resistances are at 1,460 and 1,465 levels respectively.
Malacca Securities Research
The FBM KLCI bounced in the afternoon session along with most regional peers as investors cheered China’s reduction in quarantine period for international travellers.
Nevertheless, the overnight pull-back on Wall Street signified an overall negative sentiment ahead of the earnings season on persistent worries over recession.
The broad sell-off may spill over to the regional markets as well as the local bourse. On the commodity markets, Brent crude rebounded and climbed higher towards the US$118/barrel zone while crude palm oil (CPO) traded around RM4,900-RM5,000/metric tonne.
The FBM KLCI closed above its daily EMA9 level as the key index climbed for the third straight session. Technical indicators were mixed as the MACD Histogram has extended a positive bar while the RSI hovered below the 50 level.
As the immediate resistance at 1,450 was breached, the next resistance is pegged along 1,480-1,500 while the support is located at 1,400-1,430. – June 29, 2022
