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 surrendered all of its intraday gains to end the day on the negative side again following late selling on selective heavyweights.
Even so, energy related stocks rose on news that OPEC and Russia plans to reduce their oil & gas (O&G) supplies next month.
While the heavyweights dithered, the lower liners and broader market shares regained some ground on mild bargain hunting, enabling market breadth to turn positive for the day. Traded volumes also picked up slightly as a result.
We continue to think that market conditions will stay subdued, hindered by the lack of catalysts to entice more participation.
At the same time, market sentiments remain guarded due to the ongoing doldrums in key global equity indices as their economies are facing growth threats from the energy crunch and escalating borrowing cost.
On the domestic side, market players are expecting Bank Negara Malaysia (BNM) to announce another 25 basis points (bps) hike in the OPR (overnight policy rate) to 2.5% today that could further dampen the market’s near-term sentiments.
These events could leave the key index to drift for longer, albeit a sharp pullback is unlikely as there are still pockets of buying support.
There is a minor support at 1,486 points before the 1,480 support comes into play. Further below, the support is at 1,473 points while the immediate resistance is at the 1,490 level, followed by the psychological 1,500 level.
Malacca Securities Research
The FBM KLCI extended its’ losing streak for the fourth straight session as final hour profit-taking activities dragged the key index lower.
Global markets outlook remained uncertain amid growing investors’ fear on aggressive interest rate hike following a stronger economic data in the US as well as a resurgence in China’s COVID-19 stringent measures.
Commodities-wise, Brent crude price staged a pullback, trading around US$92/barrel while crude palm oil (CPO) traded around RM3,800/metric tonne.
The FBM KLCI marked a fourth straight session decline as the key index turned negative in the final hour of trading. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI hovered below 50.
Resistance is pegged along 1,510-1,530 while the support is located at 1,465-1,480. – Sept 7, 2022
