BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
After a weak start to the day where the key index lost further ground, index heavyweights regained some traction in the afternoon session to end the day on a positive note and capturing the 1,540 level again, boosted by a rebound in plantation giants.
At the same time, the broader market was also on the mend with most sub-indices also making headway that allowed market breadth to stay positive. In the same vein, traded volumes picked up slightly.
Although the key index mounted a rebound yesterday, the recovery is still unconvincing as the buying remains selective and has yet to be sustainable.
In addition, the pick-up was also not widespread and this could still see the key index dithering for the time being.
As such, further recovery could still be uncertain due to the renewed US interest rate concerns as its inflation remains above targets.
Wall Street’s overnight weakness may also weigh on the key index’s performance in the day ahead.
With the downside bias set to return, the key index looks to still linger within the 1,530 and 1,550 levels for the time being as it also looks to build up a base at these levels. The other support and resistance levels remain at 1,535 and 1,545 points respectively.
Malacca Securities Research
Led by plantation and telco heavyweights, the FBM KLCI closed higher in tandem with most of the Asian stock markets’ performances.
Meanwhile, Wall Street ended softer as the core PPI (producer price index) and PPI data spiked 0.3% and 0.6% month-on-month (mom) against forecasts of 0.2% and 0.3% respectively while core retail sales rose 0.3% mom against a forecast of 0.5%.
Most of the data could point to slower growth in consumption activities and slightly more hawkish tone by the US Federal Reserve which may contribute to a delay in interest rate cut going forward.
On the commodity markets, Brent crude inched higher above the US$85/barrel level due to an improved US demand outlook following a higher-than-expected decline in US crude inventories as well as ongoing geopolitical risk.
The FBM KLCI index ended higher with a bullish engulfing bar above the EMA20 level. The technical readings on the key index were mixed with the MACD Histogram hovering near 0 while the RSI is above 50.
The resistance is envisaged around 1,555-1,560 while the support is set at 1,525-1,530. – March 15, 2024
