BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the key index continues to slip, it managed to stay above the 1,480 support as mild bargain hunting emerged in the afternoon session to help it end the day off its low.
Market conditions remained cautious following the steep pullback in key overseas bourses overnight with market players also awaiting for the decision on former prime minister Datuk Seri Najib Razak’s conviction appeal.
The lower liners and broader market shares were mostly higher with market breadth becoming mixed on thin volumes.
After erasing all of the month’s gains, market conditions are looking increasingly dreary as positive leads have evaporated, hence leaving the key index to drift of late.
There is no change to the near-term outlook as the insipid conditions have not subsided and could continue to leave the market directionless for now as the on-going results reporting season heads to a conclusion.
After its streak of downtrend, however, the selling pressure could ease as the FBM KLCI have found some solace at the 1,480 level.
There could be attempts to find support at the level but if it gives way, the supports are lowered to 1,477 points as well as at 1,472 points. The hurdles, on the other hand, are at 1,484 and 1,490 points respectively.
Malacca Securities Research
The FBM KLCI extended its downtrend move along with most of the regional bourses as concerns persisted ahead of the Jackson Hole meeting; investors may react negatively if the US Federal Reserve turns more hawkish going forward.
Following another lacklustre session on Wall Street, we believe the local sentiment is likely to remain shaky.
However, bargain-hunting may emerge on the broader market, especially among companies with solid earnings growth.
Commodities-wise, Brent crude saw a rebound above US$100/barrel after OPEC warned a potential output reduction to correct the recent price drop. Meanwhile, crude palm oil (CPO) price hovered above RM4,200/ metric tonne.
The FBM KLCI declined further from the 1,500 zone, extending losses for the fifth straight session.
Technical indicators remain negative as the MACD Histogram has extended a negative bar while the RSI hovered below 50. Support is envisaged at 1,460-1,480 while resistance is located at 1,500-1,530. – Aug 24, 2022
