BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The upward streak on the FBM KLCI ended yesterday as it succumbed to a mild bout of profit taking to also slip below the 1,570 at the close, ending lower in tandem with the overnight weakness on Wall Street.
The key index started the day on a positive note but the momentum lost steam as the day wore on and ended at its day low.
Many lower liners also surrendered their gains from a day earlier amid quick profit taking activities and market breadth turned negative.
Following the recent strong upward streak, the key index could endure further profit taking after Wall Street suffered a steep drop overnight after the US reported a significantly lower-than-expected GDP (gross domestic product) reading for 1Q 2024.
The weak performance is re-igniting growth concerns and prompt market players to retreat to the sidelines as its weakness could also have an impact on Malaysia export performance if the external demand remains insipid.
This could also mean that the 1,570 level is unlikely to hold and the key index will continue with its consolidation over the near-term.
On the downside, the supports are at pegged at 1,565 and 1,560 points while the resistances remain at the 1,574-1,578 levels, followed by the 1,582 level
Malacca Securities Research
The FBM KLCI snapped a six-day winning streak as mild profit taking activities were noticed in industrial heavyweights which affected sentiment of the broader market.
Over in the US, selling pressure picked up led by META, coupled with softer-than-expected 1Q 2024 US GDP data that came in at 1.6% below consensus.
We expect profit taking activities toy extend on the local front which could cap the upside opportunity at least for the near term.
Nevertheless, we remain positive following the KL20 summit coupled with the announcement on EPF (Employee Provident Fund) account 3 where it might provide a boost towards consumption activities going forward.
On the commodity markets, Brent crude traded sideways along US$88/barrel while gold price had a slight rebound above US$2,330/oz and the CPO (crude palm oil) traded below RM3,900/metric tonne.
The FBM KLCI index ended lower after a strong rally. 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 1,585-1,590 while the support is set at 1,550-1,555. – April 26, 2024
