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 managed to mount a small recovery yesterday to close in on the 1,420 level again as mild bargain hunting emerged on selected index-linked stocks like Genting Malaysia Bhd to arrest some of the recent market pullback.
The broader market was mixed-to-lower with market breadth still in the negative territory. Nevertheless, construction stocks emerged as the main movers for the day although the total traded volumes continue to stay on the low side, little changed from a day earlier.
The FBM KLCI’s recovery could sustain over the near-term that could allow it to end the week on a positive note. This follows the big moves on Wall Street overnight on expectations that the interest rate hikes could be ending.
Nevertheless, the FBM KLCI’s continuing uptrend may still be measured as market interest is still thin with buying activity likely to be just bargain hunting on some of the recent big losers following their recent sell-down.
As it is, there are still few noteworthy market leads on Bursa Malaysia to entice increased participation and this could still slow the market’s near-term recovery. The 1,420 level should be re-tested today with the ensuing targets set at 1,422 and 1,425 points while the supports are at 1,415 and 1,410 points respectively.
Malacca Securities Research
The FBM KLCI rebounded mildly with bargain hunting activities seen within the selected banking and telco sectors, while Genting Malaysia headed higher after its land sale in Miami.
We believe follow-through buying interest could be seen today following a strong surge on Wall Street after upbeat earnings from the technology giants despite the US gross domestic product (GDP) growing at 1.1% (below expectations).
Commodities-wise, Brent crude price rebounded mildly above US$78/barrel but crude palm oil (CPO) price is hovering below the RM3,500/metric tonne zone. Meanwhile, gold price hovered below US$2,000/ounce after briefly traded above the psychological level.
The FBM KLCI rebounded after a sharp drop but technical readings on the key index is still slightly negative. The MACD Histogram is still negative while the RSI is hovering below 50.
With that, we believe the upside move maybe capped along 1,430-1,435. Support is pegged around 1,400-1,405. – April 28, 2023
