BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities continue to be on a flyer, closing above the 1,570 level amid sustained buying interest – this time with the return of foreign funds that also lifted the FBM KLCI to its highest level since June 2022.
Buying was brisk with market players capitalising on the improved global equity market conditions to take up fresh positions.
There was a noticeable pick-up in traded volumes with gainers more than twice the number of losers as the broader market shares also made strong headway.
After six consecutive sessions of gains, FBM KLCI is starting to look toppish after it managed to recoup the earlier losses that were due to the heightened geopolitical events in the Middle East and the US Federal Reserve’s increasing likelihood of keeping interest rates higher for longer.
While the momentum trading has persisted, the toppish conditions could limit further near-term gains and a mild pullback could be due for the gains to be absorbed.
Nevertheless, the overall market undertone has become more positive after the key index cleared the successive hurdles and should support more medium-term gains.
Therefore, the market will be looking to preserve much of the current gains as it continues to build on its ongoing strength despite few changes to the corporate and economic fundamentals.
With the 1,570-level cleared, the resistances are now at the 1,574-1,578 levels, followed by the 1,582 level. The supports, meanwhile, are at 1,570 and 1,565 points respectively.
Malacca Securities Research
The FBM KLCI traded positively to close with a six-day winning streak, supported by utilities and telco heavyweights.
The US Treasury yields meanwhile saw an uptick which contributed to mixed trading activities on Wall Street despite fading geopolitical tensions in the Middle East.
Post-market, META share price dropped more than 15% after the company issued a softer revenue forecast going forward even though its capex for 2024 will be increased to US$35-US$40 bil as the IT giant will continue to accelerate its infrastructure investments to support the AI roadmap.
On the commodity markets, Brent crude traded along US$88/barrel while gold price maintained around US$2,310/metric tonne without significant noise from the Middle East. Elsewhere, CPO (crude palm oil) could have been oversold at around RM3,950/metric tonne, hence is due for a rebound.
The FBM KLCI index ended higher for the sixth consecutive day. The technical readings on the key index were positive with the MACD Histogram extending another positive bar while the RSI maintains above 50.
The resistance is envisaged around 1,585-1,590 while the support is set at 1,550-1,555. – April 25, 2024
