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 ended the week lower albeit it managed to stay above the 1,550 level at the close of Friday’s trading.
As it is, foreign funds continue to take profit and were still net sellers due to the lack of fresh leads and the increasingly cautious market undertone.
The broader market, however, were mostly higher with market breadth on the positive side. Key lower liner indices like the FBM Small Cap and ACE Market posted decent gains for the day amid the continuing rotational buying interest.
Although the key index managed to stay above the 1,550 level, conditions are becoming increasingly cautious following the widespread dip in global equities of late.
Rising geopolitical concerns in the Middle East and the escalating Russia-Ukraine conflict is causing consternation among investors.
Consequently, the 1,550 level is under threat again as Malaysian equities could start the week on a weaker footing, falling in tandem to the sell-down in global equities at the end of last week with market players likely to retreat to the sidelines while awaiting for a clearer market direction.
A break below the 1,550 level could see the supports at 1,543-1,547 and 1,537-1,540 levels coming in play while the resistances are at 1,557-1,560 levels, followed by 1,565 points respectively.
Malacca Securities Research
Last Friday, more selling was seen in the FBM KLCI, contributing to the two-day decline but the FBM Small Cap made a fresh 52-week high as buying interest extended on small cap stocks after a two-day break.
However, the US stock markets ended on a negative tone across the board amid persistent inflationary pressure and rising geopolitical tensions.
For this week, we believe the market could turn weaker amid concerns over Iran which might retaliate further and may provide uncertainty towards the stock markets.
On the commodity front, Brent oil price traded along US$90/barrel while gold price traded along US$2,300-US$2,400/oz on the back of heightened geopolitical risk. Meanwhile, crude palm oil (CPO) price managed to form a rebound along the RM4,230/metric tonne zone.
The FBM KLCI index ended lower for the second consecutive day. However, 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 1,565-1,570 while the support is set at 1,535-1,540. – April 15, 2024
