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 lost further ground yesterday as profit taking escalated following the earlier bouts of window dressing and ahead of the Hari Raya Haji public holiday tomorrow.
The pullback was also in tandem with the weakness among regional and key global equity indices. Conditions in the broader market, however, were mixed with construction stocks being the main outperformers.
Nevertheless, market breadth remained negative as traded volumes were unchanged from a day earlier.
There is little change to the immediate market outlook with the cautious undertone to continue dominating sentiments.
As it is, there are still few catalysts to keep market players invested amid the prevailing headways and this is likely to keep market players at bay for longer despite the overnight gains on some key global indices.
Consequently, the downside bias also remains that could see the FBM KLCI heading lower again as profit taking is still in the offing with the end of the mid-year window dressing activities.
Yesterday’s weakness also saw the key index surrendering the 1,390 level and this may see it head to the minor support at 1,385 points which is followed by the 1,380 level. The 1,390 level has turned into the immediate hurdle, followed by the 1,395 level.
Malacca Securities Research
Final-hour profit taking activities pulled the FBM KLCI into its third-session losses despite an overall positive performance across the regional markets after Beijing commented on policies to support China’s economic growth going forward.
We believe a turnaround on Wall Street overnight after the consumer confidence for June hit a 17-month high will support bargain hunting activities on the local bourse.
Commodities-wise, Brent crude is trading below US$73/barrel while crude palm oil (CPO) price hovered above RM3,650/metric tonne.
The FBM KLCI declined for the third straight session and slid below its daily EMA9 level. Technical indicators were remained mixed as the MACD Histogram extended a positive bar while the RSI is hovered below 50.
Support is monitored along 1,370 while the resistance is pegged along 1,400-1,440. – June 28, 2023
