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 continues to retreat yesterday, mirroring the performance of regional indices that were sent lower by renewed recession fears following the release of less-than-stellar US economic data.
This time around, it was technology stocks that retreated the most alongside lower liners and broader market shares. Overall market volume stayed moderate but market breadth remained on the negative territory for the day.
Despite the steep intraday pullback yesterday’s, the key index managed to end the day above the 1,420 level on the back of mild bargain hunting activities, particularly from foreign funds as they turned net buyers yesterday.
Notwithstanding the fresh support, the FBM KLCI is still largely range-bound for the most part as the buying support is still relatively benign.
After finding support at the 1,420 level, however, the key index is now attempting to build a higher base around the 1,420 level which we see continuing over the near-term, buoyed by the continuing bouts of buying support that should also allow the key index to end the week on a mildly positive note.
On the upside, there is a minor resistance at the 1,426 level, followed by the 1,433 level. Below the 1,420 support, the other is at 1,416 points.
Malacca Securities Research
The FBM KLCI has turned sideways and traded lower for the third day amid profit taking activities following weaker jobs data from the US.
However, with the overnight rebound on Wall Street, we may anticipate bargain hunting activities to pick up, but the upside might be capped today as investors might be taking a more cautious tone due the shortened trading week in the US and Hong Kong.
We believe traders will be focusing on the non-farm payrolls data later today.
Commodities-wise, Brent crude continues to trade around US$84/barrel while crude palm oil (CPO) traded slightly above RM3,800/metric tonne. Gold is still hovering above US$2,000/ounce.
The FBM KLCI trended sideways for the third day without significant movements. Meanwhile, both the MACD (MACD Histogram above zero) and RSI (above 50) are suggesting that the momentum is fairly positive.
The resistance is located around 1,440-1,450. Support is located around 1,400-1,410. – April 7, 2023
