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 was again virtually unchanged for the day with buying support at the end of the session allowing the key index to only close with superficial losses.
Nevertheless, the losses were also in tune with the weakness among ASEAN indices as market conditions stayed mixed albeit technology stocks emerged as the day’s big winners.
As a result, market breadth was relatively equal with losers just pipping gainers on total volumes that rose back above the 3 billion shares level.
The key index appears to be on a sideway trend as it has been trending within a tight range around the 1,430 level over the past few sessions.
However, the FBM KLCI could be looking to end the week on a more positive note following the overnight gains on Wall Street that was buoyed by easing inflationary pressure.
Although we see the positivity extending to Malaysian equities, the upsides may still be limited as fresh buying interest are insipid due to the availability of few compelling leads.
This could see the key index continuing to take small upward steps with the next hurdles set at 1,441 points before the next resistance at 1,446 points come into play. On the other hand, the immediate support is at the 1,430 level, followed by 1,425 points.
Malacca Securities Research
The FBM KLCI finished largely unchanged after recovering most of its intraday losses while foreign funds turned net buyers for the first time in the past five trading days.
Tracking the bullish sentiment on Wall Street overnight, we reckon that bargain hunting activities may emerge at least for the session with a broad base recovery expected to take shape.
Commodities-wise, Brent crude experienced a mild retracement towards US$86/barrel while crude palm oil (CPO) hovered above RM3,700/metric tonne. Gold prices solidify above USD2,000/ounce as investors could be flocking for safe-haven assets following the growing concerns of recessionary risk.
The FBM KLCI ended relatively unchanged to stay afloat above daily EMA9 as downside remain well cushioned. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered slightly above 50.
The resistance remains located at 1,440-1,450 while the support is pegged around 1,400-1,410. – April 14, 2023
