BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the FBM KLCI started the week on a firmer note at the close, the gains were benign as market conditions were relatively lacklustre for most of the day due to the continuing selling by foreign funds.
With few fresh leads, the buying was selective among the index heavyweights with the lower liners being mostly range-bound albeit many of these stocks managed to make further headway.
As a result, market breadth remained positive with traded volumes remaining above the 4 billion shares mark.
There is no change to our immediate market view with the FBM KLCI likely to remain range-bound for the time being.
Although there appears to be further upside bias, conditions may change that could reverse the recent mildly positive trend as the fresh buying interest is still relatively thin amid the lack of fresh leads.
Therefore, the key index is likely to sustain its base building for the time being albeit it could be at a higher level of between the 1,550 and 1,560 levels due in part to local institutional support to cushion against the persistent foreign selling that has been slowing down its ascend.
Market players will also be on the look-out for hints on the US interest rate direction later this week for a new direction.
With the mild upside to prevail for now, the key index could target 1,557 points before making a pass at the 1 560 level. The immediate support is at 1,550 points, followed by the 1,545 level.
Malacca Securities Research
The FBM KLCI traded flat for the session as telco heavyweights were beaten down.
Meanwhile, the overall US stock markets headed higher as investors digested news from Nvidia’s AI (artificial intelligence) conference and traded more positively ahead of the Federal Open Market Committee (FOMC) meeting that will be concluding this week.
However, the market is positioning for a delayed rate cut probably by 2H 2024, according to Bloomberg.
Given the more positive sentiment in the US, we believe buying support could spill over to stocks on the local front.
On the commodity markets, Brent crude rose strongly to near a five-month high amid heightened geopolitical tensions after Ukraine attacks on Russian refineries while China reported better-than-expected economic data.
The FBM KLCI index ended flat after a two-day rebound. However, technical readings on the key index were mixed with the MACD Histogram hovering flattish along 0 while the RSI is above 50.
The resistance is envisaged around 1,565-1,570 while the support is set at 1,535-1,540. – March 19, 2024
