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’s uptrend resumed at the start of the week, posting decent gains to end the day and covering the gap-down formation at 1,433 points.
Energy stocks were the big movers on OPEC’s move to trim supplies.
The equity market was also buoyed by the potential RM170 bil worth of investments from China with the positivity also spreading to lower liners and broader market shares.
As a result, gainers were almost twice the number of losers for the day but volumes were only marginally higher.
The near-term outlook remains sanguine, buoyed by improved sentiments on global equities given optimism that inflation is easing, and interest rate rises could slow.
At the same time, recession risk has also lessened, thereby providing further impetus for equities to head higher.
Back home, optimism has improved over the potentially increased investments from China that is seen as a big booster for the country’s economic undertone going forward.
Collectively, these developments could sustain the FBM KLCI ascend which may now target the 1,440 level, albeit we think the upsides could be punctuated by bouts of profit taking.
Above the 1,440 level, the next hurdles are at the 1,442-1,445 levels. The supports, meanwhile, are at 1,430 and 1,422 points respectively.
Malacca Securities Research
The FBM KLCI rebounded as rallies on Wall Street coupled with China’s future investment in Malaysia boosted sentiment.
Although sentiment appeared to improve on the global front, risk may not abate yet as rising crude oil price may again trigger fears over inflation in the US and Europe.
Nevertheless, buying interest on the local bourse should be supported by climbing crude oil prices as well as a better economic outlook following the reopening of China borders.
Commodities-wise, Brent crude price rallied by trading above the US$84/barrel mark while crude palm oil (CPO) price hovered above RM3,890/metric tonne.
The FBM KLCI extended its rebound to close above its daily EMA20 level. Technical indicators turned positive as the MACD Histogram extended a positive bar while the RSI climbed above 50.
Resistance is pegged along 1,445-1,460 while the support is positioned at 1,380-1,400. – April 4, 2023
