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 sprung one of its better performances of late after it shot through the 1,430 and 1,433 hurdles at the close yesterday (April 11).
The upsides were also in tandem with positivity in most regional equity indices after the release of February’s manufacturing PMI that were above expectations.
Lower liners and broader market shares also rose, hence enabling market breadth to end on the positive side. Traded volumes were little changed but stayed above the 3 billion shares level.
The FBM KLCI’s slow recovery progress is ongoing as it moves further away from its year low, buoyed by bouts of mild bargain hunting to nullify the still unsettled global market conditions.
As it is, there are still lingering concerns over the state of the global economies that will continue to weigh on sentiments albeit they are placed in the backburner for now.
Despite the cautiousness, the key index could still attempt to make further near-term headway as it looks to extend its recovery from its downtrend that started in January.
The upsides may be measured as market players look for more compelling buying opportunities with the next hurdle located around the 1,441 level. The ensuing resistance is at the 1,446 level while the supports are pegged at the 1,430-1,433 levels, followed by the 1,426 level.
Malacca Securities Research
The FBM KLCI strengthened for the third straight session amid regional markets’ rallies on hopes of a less-hawkish tone by central banks following the Bank of Korea’s move to keep the country’s interest rate unchanged.
While sentiment on the local bourse appeared firmer on the back of prevailing bargain hunting activities, upside may be capped prior to the release of the US inflation data later tonight.
Commodities-wise, Brent crude price hovered above US$85/barrel while crude palm oil (CPO) traded above RM3,850/metric tonne. Gold price rose above US$2,000/ounce.
The FBM KLCI ended higher for the third straight session as the key index closed at an intraday high with the EMA9 surpassing EMA20. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
The resistance is monitored at 1,440-1,450 while support is located around 1,400-1,410. – April 12, 2023
