BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index managed to end the day flat and only recovered with an end-of-day lift on selected heavyweights.
For most of the day, however, the key index was in the negative territory as market sentiment stayed mostly gloomy amid the low buying interest.
The broader market and lower liners were again in the red with the lack of leads keeping conditions cautious. As a result, there were more losers than gainers for the day.
The FBM KLCI is likely to sustain its indifferent trend over the near-term with mild support to keep it close to the 1,420 level for the time being.
It is at this level that it may also be attempting to build up a base. However, the selling pressure has not abated and could still disrupt the base building process.
As it is, market sentiments are still unsettled and affected by concerns over the slowing economy that is further affected by the resurgence of COVID-19 cases globally.
If the 1,420 level fails to stay, the supports are lowered to around the 1,415 before the psychological 1,400 level comes into play. The hurdles, on the other hand, are at 1,431 and 1,440 points respectively.
Malacca Securities Research
The FBM KLCI closed marginally higher as final-hour buying interest lifted the key index. Nevertheless, we believe sentiment could remain tepid amid downtrend move on Wall Street and regional markets.
Meanwhile, concerns over recession persisted against the backdrop of rising global interest rate setting.
Commodities-wise, Brent crude price sank below US$100/barrel amid concern over weaker demand following China’s stringent move to curb the COVID-19 spread.Crude palm oil (CPO) was traded towards RM4,000/metric tonne amid declined palm oil export and rising CPO inventories in June 2022.
The FBM KLCI eked out marginal gains after hovering in the negative territory throughout the trading session. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI hovered below 50.
Resistance is envisaged along 1,460-1,480 while the support is pegged around 1,400-1,420. – July 13, 2022
