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 ground yesterday as quick profit taking emerged to send the key index into the negative territory at the close.
Banking stocks were among the big losers yesterday but glove stocks were the big gainers on renewed bargain hunting.
The mostly higher lower liners and broader market shares helped gaining stocks to stay ahead of losing ones. At the same time, there was a big jump in market volume amid the return of more trading interest.
There could be more selling activities in the day ahead as sentiments could turn cautious again on concerns that the stubbornly high inflationary pressures could see interest rates raised further in due course.
As such, the profit taking could extend and the FBM KLCI may end the week on a losing note again with some of the recent gains becoming undone.
At the same time, there are also few noteworthy domestic leads to provide the buying support for the time being as market players await for more results to be released.
However, the pullback is expected to be mild due to the still low selling pressure and this should allow the key index to hold on to the 1,480 level for the time being which is also the 200-day Moving Average line.
If the level fails to hold, the ensuing supports are at 1,476 and 1,470 points respectively. On the other hand, the hurdles are at the 1,488-1,490 levels, followed by 1,494 points.
Malacca Securities Research
The FBM KLCI slipped into the negative territory after midday break amidst quick profit-taking activities following a four-day rally.
As investors parsed through the stronger-than-expected inflation report, global sentiment has again turned slightly weaker in the anticipation of a hawkish tone from the US Federal Reserve moving forward.
While bargain hunting activities may occur amid the reporting season, we believe cautious sentiment on the global front may capped the buying momentum on the local bourse.
Commodities-wise, Brent crude price hovered above US$84/barrel while crude palm oil (CPO) price climbed above RM4,000/metric tonne.
The FBM KLCI closed lower after a four-day rally but the key index continues to hover above EMA20 level.
Technical indicators, however, turned positive as the MACD Histogram crossed above zero while the RSI is hovering above 50.
Resistance is set at 1,525-1,540 while support is pegged along 1,450-1,460. – Feb 17, 2023
