BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities went nowhere yesterday as it managed to claw back most of its intraday losses to close nearly unchanged in a session devoid of significant moves.
As a result, energy stocks retreated and emerged as the worst performer, nullifying some of its previous day’s upsides.
On the broader market, trading conditions were mixed amid the dissipating bargain hunting that resulted in traded volumes slipping back below the 2 billion share mark while market breadth turned negative once more.
Despite the still directionless environment, the key index has stood its ground of late, and this is allowing for it to find solace and to end its downward streak that started in May.
There could be more near-term upsides as Malaysian equities look to mirror the performance of key global indices overnight and to head higher amid the recovering market sentiments that would also help to temporarily cast aside concerns over the increasingly difficult economic environment.
The upsides could see the FBM KLCI making a pass at the next targets of 1,438-1,440. Thereafter, the next hurdle is the psychological 1,450 level.
On the flipside, the supports are at 1,425 and 1,420 points respectively.
Malacca Securities Research
The FBM KLCI booked marginal losses as investors remained on the sidelines while waiting for fresh market leads.
Nevertheless, sentiment on the local bourse should improve after mild profit taking activities yesterday, tracking the sharp rally on Wall Street overnight buoyed by strong corporate earnings.
Commodities-wise, Brent crude price improved by trading above the US$107/barrel mark on the back of resumed worries over tight supply. Meanwhile, crude palm oil (CPO) rebounded to trade above RM3,900/metric tonne.
The FBM KLCI closed flat with a hammer pattern. Technical indicators were slightly positive with the MACD Histogram having extended another positive bar while the RSI is recovering above the oversold region towards 50.
Resistance is pegged along 1,460-1,480 while the support is set at 1,400-1,420. – July 20, 2022
