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 continues to make headway, aided by the calmer market conditions that allowed for the key index to extend its upward streak for a third day, albeit the gains were still measured.
Banking stocks led the key index higher while healthcare stocks were again the biggest gainers of the day on sustained bargain hunting. Many lower liners also closed higher, thus enabling market breadth to stay in the positive territory.
Traded volumes, however, were still on the low-moderate side.
With few negative market developments, the calmer market conditions look to sustain over the near-term and this should permit the key index to end the week on a positive note.
Market conditions are also buoyed by the hopes that the US debt ceiling negotiations could be resolved soon that has lifted key global indices overnight. The positivity is likely to permeate to Malaysian equities and help bolster investor sentiment ahead of the weekend.
However, we still see the upsides remaining modest as there is still tentativeness that could prompt profit taking on some of the recent gainers.
As such, the key index may find 1,430 points serving as the immediate hurdle for now. Above this level, the 1,435 level is the next significant hurdle to clear. The supports, on the other hand, are at 1,425 and 1,420 points respectively.
Malacca Securities Research
The FBM KLCI logged gains in tandem with regional peers, buoyed by selected banking and consumer heavyweights.
With global sentiment turning positive-biased despite the ongoing debt-ceiling talks, we believe that might boost investors’ risk appetite on the local front.
Meanwhile, the earnings season will still be on the centre stage. Commodities-wise, Brent crude traded above US$75/barrel while crude palm oil (CPO) price hovered slightly below RM3,400/metric tonne. Gold price remained below US$2,000/ounce.
The FBM KLCI advanced as the key index closed above its daily EMA9 and EMA20 level. Technical indicators turned mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50.
Resistance is envisaged along 1,440-1,450 while the support is pegged around 1,400-1,410. – May 19, 2023
