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 mounted a decent rebound yesterday to regain the 1,480 level in tandem with the gains in regional indices that were buoyed by China’s re-opening hopes.
The nibbling by foreign buyers also helped to shore up the key index with banking and plantation stocks leading the upsides.
Lower liners and broader market shares retreated slightly, but market breadth turned positive for the day. Traded volumes also climbed slightly.
Despite yesterday’s gains, market conditions could turn wary again following the overnight retreat on Wall Street as odds of further US interest rate hikes increased following the release of their strong employment data.
The renewed concerns could undo the recent upsides as it may prompt quick profit taking on some of yesterday’s big movers.
At the same time, the lack of domestic leads could also leave the key index to drift with little support for the time being.
This could again leave the key index to drift with the 1,480 level under threat again and if it fails to hold, the supports are lowered to the 1,470-1,473 levels, followed by the 1,467 level.
On the upside, the hurdles are at 1,483 and 1,490 points respectively.
Malacca Securities Research
The FBM KLCI rebounded into the positive territory as foreign funds turned into net buyer after a four-day outflow streak.
While the re-opening of China borders may continue to stimulate economic activities, the stock markets may remain volatile as recessionary concerns could still remain as top agenda following the release of US job data overnight which may signal further increase in interest rate outlook.
Commodities-wise, the Brent crude saw slight rebound, trading above the US$78/barrel mark while crude palm oil (CPO) price hovered above RM4,000/metric tonne.
The FBM KLCI advanced and closed above its daily EMA9 level. Technical indicators turned positive as the MACD Histogram extended a positive bar while the RSI crossed above zero line.
Resistance is monitored at 1,500-1,510 while the support is envisaged along 1,450-1,460. – Jan 6, 2023
