BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Despite attempts to shore up the key index early in the session, it retreated as the day wore on to end on another downbeat note amid the continuing profit taking activities albeit they were milder.
Overall market conditions were still relatively benign following the recent strong gains. At the same time, sentiments among the broader market shares were dampened by steep selling on some lower liners which left market breadth staying negative and market interest slipping further.
The FBM KLCI could continue to consolidate ahead of the weekend as profit taking activities are still prevalent after the recent strong upsides.
As it is, market conditions are still toppish and the pullback looks to be still in play. At the same time, fresh buying interest is also relatively tepid with market players still waiting for the consolidation to run its course.
Although the downside bias remains, the pullback could still be relatively modest due to the benign selling pressure.
This should see the 1,480 level provide ample support for now with the ensuing support pegged at the 1,475-1,477 levels. On the flipside, the immediate hurdles are at the 1,488-1,490 levels, followed by the 1,495 level.
Malacca Securities Research
The FBM KLCI ended the session with a two-day pullback as profit taking activities were noted within the gaming heavyweights after Genting Bhd plans another round of US$100 mil equity injection into Empire Resorts.
Meanwhile, Wall Street had a volatile move after the release of CPI data which is hotter-than-expected while the unemployment claims came in below expectation, suggesting that the labour market is rather strong at this juncture.
With that, investors will be eyeing closely the PPI numbers and banks earnings that will be released later tonight.
Nonetheless, we expect bargain hunting activities to emerge in Malaysia’s market. On the commodity front, Brent crude price inched higher with elevated geopolitical tension in the Middle East.
The FBM KLCI ended lower for the 2nd consecutive day. The technical readings on the key index were mixed, with the MACD Histogram extending a less positive bar while the RSI maintains above the 50 level.
The resistance is envisaged around 1,500-1,510 while the support is set at 1,470-1,480. – Jan 12, 2024
