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 made a strong rebound yesterday with telecommunications and plantation stocks lifting it to its highest level in more than two months.
Telecommunication stocks rose after the telcos agreed to take up stakes in Digital Nasional Bhd, hence paving way for the eventual roll-out of 5G services.
However, lower liners and broader market shares only made modest gains as interest in these stocks remained thin.
Market breadth turned positive with total traded volumes picking up slightly.
The key index has made an encouraging rebound to climb pass its various hurdles of late with rotational buying by foreign funds offsetting the selling by local institutions.
With foreign equity markets also making a rebound of late, buoyed by the easing recession fears, the near-term outlook on Bursa Malaysia appears to be positive as well as seemingly able to sustain the near-term gains.
However, there could be some mild profit taking at the start of the session after yesterday’s big moves although an uptrend is likely to be maintained for now.
The continued upsides could see the key index making a pass at the 1,520 hurdle and if it cleared, the next hurdle is at 1,525 points. On the downside, the supports are pegged at 1,510 and the psychological 1,500 level.
Malacca Securities Research
The FBM KLCI staged a strong breakout, mainly fuelled by buying interest in the telecommunication heavyweights coupled with the healthy inflow of foreign funds; the five-day net foreign buying stood at RM719.8 mil.
While the global markets may keep an eye on UK’s inflation to gauge the global recession risk, we believe the local bourse should remained positive in the upcoming earnings season following last April’s opening of international borders.
Commodities-wise, both the Brent crude and crude palm oil (CPO) trended lower with the former trading around US$92/barrel and the latter hovering slightly above RM4,100/metric tonne.
The FBM KLCI breakout to close at an intraday high, breaching above its daily EMA120 level. Technical indicators are set to turn positive as the MACD Histogram has rebounded above zero while the RSI hovered above 50.
The key index’s resistance will be set around 1,530-1,560 with the support pegged around 1,480-1,500. – Aug 17, 2022
