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 made a quick recovery on Friday despite the weakness on Wall Street a day earlier. The gains were in line with the rebound in regional indices that also bucked the US market’s continuing pullback.
In the process, the key index climbed back above the 1,570 level as well as headed to another two-year high.
Similarly, the broader market shares rebounded, allowing for market breadth to stay positive with traded volumes back above 4 billion shares for the day.
Stocks on Bursa Malaysia has scored well to cast aside Wall Street’s volatile trend of late and to continue making decent headway.
Its climb to its two-year high is also encouraging as it maintained its outperformance against regional markets and to sustain its YTD (year-to-date) gain, playing catch up to their positive performance of regional indices in 2023.
However, the FBM KLCI is already nearing overbought after the more than decent gains and the key index is already due for a pullback for the gains to be digested with the technical indicators already toppish.
Even so, there are no immediate signs of a consolidation as yet and the key index could still tip up further at the start of the week, targeting the near-term hurdle at the 1,580-1,582 levels.
We see more modest gains beyond that level with the next hurdle set at 1,588 points. The supports, meanwhile, are at 1,565-1,567 points and 1,560 points respectively.
Malacca Securities Research
After a one-day pullback, the FBM KLCI regained its upward move and closed at a fresh 52-week high while the FBM Small Cap is overall bullish as well.
Similarly, the uptrend move on Wall Street has returned after Microsoft and Google registered better-than-expected results while the core PCE (Personal Consumption Expenditures) data were within consensus estimates.
This week, traders will be focusing on earnings from Amazon, Apple, Qualcomm and AMD which are related to the technology sector while Mastercard, McDonald, Starbucks, Coca-Cola will be monitored under the consumer sector.
On the commodity markets, Brent crude remained range-bound along US$87-US$88/barrel.
The FBM KLCI index charged higher above the 1570 level. The 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 1,590-1,595 while the support is set at 1,555-1,560. – April 29, 2024
