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 mounted a quick rebound yesterday to re-capture the 1,550 level at the close amid the return of bargain hunting on selective index-linked stocks.
The key index’s gains were also in line with the broad gains in many regional indices. Still, it ended the day off its intraday high after it retested its recent high again.
Broader market shares, however, remained mixed-to-lower, thus causing market breadth to stay negative. Traded volumes, meanwhile, shot up to 5.3 billion shares for the day.
Yesterday’s quick rebound is proving that the market’s undertone is still very much holding and could help to prolong the near-term positivity amid hopes of a firmer economic outlook for the year ahead.
This is likely to continue providing the impetus for further near-term positivity as market players adjust their portfolios in anticipation further improvements in the market conditions.
However, the key index is already toppish and sharp gains may still be difficult to come by.
We also think that a consolidation spell is already due after the key index’s strong YTD (year-to-date) gains to allow it to take a breather.
For now, the hurdles are at the 1,556-1,558 levels – the recent highs, followed by the 1,560-1,563 levels. The 1,550 level is the immediate support, followed by the 1,545 level.
Malacca Securities Research
The FBM KLCI rebounded on the back of MSCI re-balancing activities with most of the banking heavyweights traded positively for the session.
On Wall Street, the US stock markets ended on a firmer note as Core PCE (personal consumption expenditures) data came in within expectation and fell 2.8% year-on-year (yoy), translating to a fourth month winning streak in the US stock markets.
We believe the overall sentiment may stay positive as the Core PCE data may signal earlier than expected rate cut by the US Federal Reserve.
On the commodity market, Brent crude price turned slightly lower but supported above the US$80/barrel level amid on-going geopolitical tensions while gold secured above the US$2,040/oz level yesterday.
The FBM KLCI ended higher currently consolidating sideways. The technical readings on the key index were mixed with the MACD Histogram extending another negative bar while the RSI is hovering above 50.
The resistance is envisaged around 1,565-1,575 while the support is set at 1,530-1,540. – March 1, 2024
