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 nudged into the positive territory at the end of yesterday’s session on light bargain hunting in yet another muted trading session where foreign funds continue to be the net sellers due to the lack of leads.
The lower liners also turned in a mixed performance but plantation stocks emerged as the day’s biggest winners. However, market breadth returned to the negative side again amid the insipid buying interest.
With the lacklustre conditions prevailing for the time being, the near-term outlook is likely to stay unsettled with the key index looking set to drift further. As it is, leads are still far and in-between and this is likely to preserve the insipid conditions for now.
The recently concluded results reporting season has also yielded few catalysts while overseas equity markets are also on a holding pattern that could collectively leave market conditions on a low gear for now.
As a result, the key index may still trend within a narrow range as it looks to find support at around the 1,380 levels, particularly with foreign funds yet to turn buyers on Malaysian equities even as the selling pressure appears to be abating.
Below 1,380, the supports remain at the 1,372 and 1,376 levels while the hurdles are at 1,385 and 1,396 points respectively.
Malacca Securities Research
The FBM KLCI bounced from losses to end on a positive note as bargain hunting activities emerged in the final trading hour on selected plantation and Petronas-related heavyweights.
Meanwhile, both the S&P 500 and Nasdaq are still positive-biased on Wall Street, charging towards their respective year-to-date highs. We believe the positive sentiment may spill over to the local bourse.
Nevertheless, investors may remain on the sidelines while awaiting the US Federal Reserve interest rate decision next week.
Commodities-wise, Brent crude oil saw a slight pullback towards US$75/barrel while crude palm oil (CPO) price hovered above RM3,350/metric tonne.
The FBM KLCI ended marginally higher, defending its immediate support at 1,370. Technical indicators however, remained negative as the MACD Histogram extended a negative bar while the RSI is oversold (below 30), suggesting that the KLCI could be due for a rebound.
Resistance is set along 1,400-1,440 while the support is located at 1,370. – June 7, 2023
