BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index mounted a quick rebound yesterday to climb back to the 1,580 level at the close despite market conditions still largely tentative from the prospects of higher-for-longer interest rates.
As a result, the buying was also selective among the FBM KLCI constituents while the upsides were not accompanied by a pick-up in volumes.
This also left market breadth on the negative side albeit the FBM ACE and FBM Small Cap indices still managed to post minute gains for the day.
We continue to see near-term market conditions staying unsettled despite yesterday’s rebound.
As it is, the key index is still toppish following its most recent uptrend that that has left it overbought and a consolidation is already due.
However, there are also few signs of a meaningful pullback as yet and with global equities still on a recovery mode, the FBM KLCI could still attempt to pass the 1,580-resistance level heading into the weekend.
Nevertheless, we see the upsides becoming more measured due to the toppish conditions as it also heads to its major resistance at the 1,600 level. In the interim, the hurdles are at 1,583 and 1,590 levels while the supports are at 1,575 and 1,570 points respectively.
Malacca Securities Research
Again, the FBM KLCI has rebounded, charging towards its 52-week high with the help of selected YTL-related and consumer heavyweights.
Over in the US, Wall Street gained momentum on the back of bargain hunting activities as the market weighed the US Federal Reserve’s action to keep the interest rates unchanged and the less hawkish interest rate guidance.
We believe the post-market jump in Apple and Qualcomm after their earnings beat will be able to provide decent buying support in the local exchange. Still, the market will be monitoring closely jobs data that will be released later tonight.
On the commodity markets, Brent crude further retraced and traded below US$84/barrel while CPO (crude palm oil) continues to range-bound around RM3,800-RM3,900/metric tonne.
The FBM KLCI index has returned to the 1,580 level. The technical readings on the key index, however, were positive with the MACD Histogram extending another positive bar while the RSI maintains above 50.
The resistance is envisaged around 1,595-1,600 while the support is set at 1,560-1,565. – May 3, 2024
