BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities started the week on a firmer note, thanks to gains on banking, utilities and glove maker stocks with bargain hunting from foreign buyers leading the charge.
Elsewhere, Serba Dinamik Holdings Bhd was among the big mover on high volumes after it announced the appointment of an independent reviewer to its accounting matters.
Other lower liners and broader market shares also saw a mild revival at the start of the week.
While yesterday’s rebound was welcomed to arrest the recent downtrend, we think more is needed to break the trend.
As it is, we still see tentativeness due to the uncertainties over the economic and corporate earnings outlook amid the ongoing pandemic conditions that has yet to abate and this could continue to weigh on sentiments for the time being.
With fresh buying interest still anaemic, we think that significant upsides will still be difficult to come by, hence a broadly sideway trend is likely to remain in place for the time being amid some mild bouts of support.
All-in-all, we see the FBM KLCI attempting to stay within the 1,580 level over the near term with the immediate support and resistance levels at 1,572 and 1,590 points respectively.
Malacca Securities Research
Mirroring the overnight gains at Wall Street and advances in regional markets, the FBM KLCI recouped losses from previous sessions as the key index witnessed signs of bargain hunting after recent sell-down.
There might be some portfolio rebalancing activities by index-linked funds towards the end of the week before the June semi-annual review of the FBM Index Series taking effect after coming Friday.
Commodities-wise, crude palm oil (CPO) price has seen a pull-back in line with the weakness in soybean oil as well as concerns over higher production and stock level while Brent oil steadied above US$70 at this juncture.
The FBM KLCI started the week on a positive tone as the key index managed to hold above its immediate resistance level at 1,565. Technical indicators turned positive as the MACD Histogram has turned into a green bar, while the RSI hovered above the 50 level.
Mild bargain hunting activities may lift the key index higher with resistance set at 1,600, while the support level is envisaged around 1,555-1,565. – June 15, 2021
