BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more upsides on Bursa Malaysia yesterday with the key index heading higher on sustained bargain hunting by local funds.
For most of the day, however, the FBM KLCI were just marginally higher until the end of the day when selected stocks were chased up to allow the key index to close above the 1,390 level.
Most Bursa sector indices also rose with technology stocks being the big movers. Market breadth was positive with traded volumes increasing to 2.8 billion shares for the day.
There should be more near-term upsides on the FBM KLCI as the market’s undertone is still mildly positive, boosted by the calmer global market conditions that is also permeating to the local bourse even as the headwinds have not eased.
The positivity will allow the key index to fortify its position around the psychological 1,400 level ahead of the upcoming results reporting season and to regain some ground after its recent pullback.
The key index could now test the hurdles at the 1,395-1,397 levels before making a pass at the 1,400 level which may still serve as a formidable level to clear due to the still low market following and lack of catalysts. The immediate support is at 1,390 points, followed by the 1,385 level.
Malacca Securities Research
The FBM KLCI advanced in tandem with the mostly positive regional peers. Looking ahead, we reckon that the key index may look to take a jab towards the 1,400 psychological level as sentiment remains in favour.
The lower liners are also benefitting with rotational play that were evident across the board while trading activities gather pace as traders nibble onto beaten down stocks.
While investors are anticipating softer US inflation data, this suggests that the monetary tightening cycle may near its peak and bodes well for the equities market.
Meanwhile, the barrage of US corporate earnings releases will be in focus. Commodities- wise, Brent crude jumped above US$79/barrel while crude palm oil (CPO) climbed above RM3,900/metric tonne.
The FBM KLCI formed a gap up formation to close above EMA20. Technical indicators turned positive as the MACD Histogram formed another positive bar while the RSI edged marginally above 50.
Should the key index breakout above 1,400, the immediate resistances are envisaged along 1,413-1,430 while the support is pegged around 1,370. – July 12, 2023
