BELOW are excerpts of viewpoints from two chosen analysis homes on what buyers can anticipate within the day forward:
The FBM KLCI ended Monday marginally greater after a listless buying and selling session with the important thing index largely on a holding sample, awaiting for extra catalyst to emerge which had been additionally in tune with its regional friends’ largely detached performances.
Rotational curiosity moved to building shares as they emerged because the day’s largest movers however the broader market shares ended decrease to go away market breadth on the damaging facet. Traded volumes, nevertheless, picked up once more to surpass the three.0 billion shares mark.
Though the important thing index nonetheless managed to notch up some positive factors yesterday, market situations are more likely to keep detached forward of this weekend’s state elections.
Consequently, the market is more likely to dither as market gamers may simply be nibbling on chosen shares in the interim.
This might gradual additional recoveries albeit the promoting stress can be remaining comparatively benign and will depart the important thing index to float for longer.
As it’s, the market’s undertone remains to be optimistic in tune with the upsides in most world equities however the FBM KLCI’s latest positive factors are additionally deemed to be extreme, therefore it seems the important thing index is present process a consolidation spell to permit the positive factors to be digested.
With the FBM KLCI set to remain range-bound, the resistances stay on the psychological 1,450 degree and at 1,455 factors whereas the principle assist remains to be on the 200-day shifting common line of 1,437 factors, adopted by 1,433 factors.
Malacca Securities Analysis
The native bourse ended comparatively unchanged as buyers are staying on the sidelines forward of this weekend’s state elections.
We anticipate the muted buying and selling sentiment to increase within the coming days on the again of the absence of contemporary leads. The decrease liners may expertise related motion amid persisting uncertainties over the result of the six state elections.
Going ahead, the important thing focus shall be on the discharge of Malaysia’s industrial manufacturing information later at present. In the meantime, the improved market sentiment on Wall Avenue might even see gentle upsides permeating in direction of shares throughout the native bourse.
Commodities-wise, Brent crude took a step again beneath US$86/barrel whereas crude palm oil (CPO) costs slipped beneath RM3,800/metric tonne.
The FBM KLCI ended flat, forming a doji candle to take care of above each day SMA200. Technical indicators remained combined because the MACD Histogram prolonged one other damaging bar whereas the RSI treaded above 50.
The quick resistances are positioned alongside 1,460-1,480 whereas the assist is pegged round 1,400-1,420. – Aug 8, 2023