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 lost further ground as selling activities continue to dominate trades, leaving the key index at the 1,530-support level at the close.
Plantation and telco stocks saw heavy selling as they led the key index lower. In the same vein, the lower liners and broader market shares also lost ground on profit taking after many of these stocks saw decent upsides of late.
Amid the selling, market breadth was decidedly negative even as traded volumes were little changed from a day earlier.
Market conditions are staying mostly indifferent for the time being as there are few noteworthy catalysts to provide the lift to the market.
As a result, the wait-and-see stance should also persist for the now, as with the downside bias due to lack of fresh buying.
This could leave the 1,530 level at the crossroads and at risk of being breached again which could further undo some of the gains the key index attained this year.
Concerns still abound over China’s slow economic recovery that could also dampen Malaysia’s prospects for the year as well.
Nevertheless, we think the key index could be angling for a positive close to the week, taking cue from Wall Street’s strong recent performance.
But if the 1,530 level gives way, the supports are lowered to 1,527 points, followed by the 1,520 level. On the upside, the resistances are at the 1,536 and the 1,540 levels respectively.
Malacca Securities Research
The FBM KLCI traded lower as the market was slightly cautious as profit taking activities emerged prior to the public holiday.
Meanwhile, we believe the US stock markets will be staying cautious ahead of Friday’s US personal consumption expenditures (PCE) data which is closely watched in order to determine the US Federal Reserve’s interest rate direction going forward.
Tracking the mixed sentiment in the US, we believe the local exchange will trade in a range-bound mode today.
On the commodity markets, Brent crude surged strongly amid the ongoing OPEC+ production cuts, geopolitical tensions in the Middle East and attacks on Russia’s energy infrastructure coupled with a falling US rig count. Additionally, gold price has surged above the US$2,230/oz zone.
The FBM KLCI index ended lower after consolidating around the 1,535 level. The technical readings on the key index were negative with the MACD Histogram extending a negative bar while the RSI is hovering below 50.
The resistance is envisaged around 1,545-1,550 while the support is set at 1,510-1,515. – March 29, 2024
