BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the FBM KLCI continues to head south, the broad market conditions improved with market breadth turning positive again as bargain hunting emerged on many of the lower liners and broader market shares, particularly among technology stocks, after their recent weakness.
However, the key index ended at its lowest level since November last year due to the lack of buying impetus that left it to drift further. Traded volumes for the day, meanwhile, were little changed.
Market conditions could still remain subdued in the day ahead as investors await the unveiling of a revised Budget 2023 that could provide the direction of the country’s economy in the year ahead.
As it is, market players will be on the look-out for companies that could benefit from the Budget 2023 as well as initiatives to bolster the country’s economic undertone.
In the interim, the key index could trend within a tight range as it attempts to find a base from the recent sell-down.
This could see the FBM KLCI linger between the 1,455 and 1,460 points for the day. Apart from these levels, the other support and resistance levels are at the psychological 1,450 level and 1,465 points respectively.
Malacca Securities Research
Intensified selling pressure dragged the FBM KLCI into the negative territory yesterday, taking cues from the regional losses.
While the Wall Street staged a rebound overnight – signalling the emergence of a positive sentiment – volatility might not abate over the near term without slowing down the interest rate upcycle.
Back home, the re-tabling of Malaysia Budget 2023 will be taking the centre stage with investors may also be keeping an eye on Malaysia’s inflation rate today.
Commodities-wise, Brent crude traded above US$82/barrel while crude palm oil (CPO) price hovered above RM4,250/metric tonne.
The FBM KLCI has fallen deeper into the negative territory as the key index dipped below its immediate support at 1,460. Technical indicators remained negative as the MACD Histogram extended a negative bar while RSI is hovering below 50.
The next support is located at 1,430-1,450 while the resistance is pegged along 1,500-1,510. – Feb 24, 2023
