BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Profit taking activities extended for a second day even as the key index attempted to make a recovery earlier in the session.
However, the FBM KLCI managed to hold on to the psychological 1,600 level at the close on the back of bouts of mild buying support.
Unlike index-linked stocks, the lower liners regained ground to help market breadth to also return to the positive side albeit their gains were relatively benign. The day’s volume was also easier but remained above 4.5 billion shares for the day.
After a two-day consolidation, the key index could mount a rebound to end the week on a firmer note.
This is despite its still overbought market conditions that may still linger for the time being due to largely positive market undertone that could keep any pullback short.
Bargain hunting activities could emerge again and this is likely to provide the lift to the FBM KLCI to regain some traction as stocks on Bursa Malaysia could be riding on the sustained positivity among key global indices to head higher.
This is likely to see the key index recapturing the 1,608 level with the key index making further headway to re-test the 1,610 level over the near-term. On the downside, the supports remain at the 1,595 and 1,590 levels respectively.
Malacca Securities Research
The FBM KLCI has extended its pullback for the second session after hitting the 52-week high recently while the FBM70 has snapped a four-day winning streak with the emergence of profit taking activities.
Over in the US, Wall Street gained momentum after the release of weekly jobless claims which jumped to the highest level since August. This has boosted the interest rate cuts optimism going forward.
Despite the elevated inflationary pressure, we are anticipating the overall markets to register new heights at least for the near term after assessing the AI (artificial intelligence)-driven corporate earnings this quarter.
On the commodity markets, Brent crude rebounded along our initial support zone of US$81-US$83/barrel amid strong demand and softer dollar. For crude palm oil (CPO), it continues to trade along the support zone around RM3,800/metric tonne.
The FBM KLCI index ended lower after ascending to a 52-week high. 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 1,615-1,620 while the support is set at 1,580-1,585. – May 10, 2024
