BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities remained subdued amid a directionless trading environment with the key index again ending with minute losses yesterday albeit finding support at 1,425 points.
The insipid conditions were also in line with regional indices that reacted adversely to China’s weak economic data.
Conditions in the broader market were also tepid, resulting in market breadth remaining in the negative territory as foreign funds continue to be net sellers. Traded volume rose to nearly 3.5 billion shares.
There is no change to the immediate market outlook with conditions staying directionless amid a still cautious undertone.
As is it, market players are on the lookout for fresh catalysts and with fewer leads both from domestic and foreign sources, the FBM KLCI is set to drift further.
This also means that the downside bias remains and the key index could surrender its 1,425 support to head to the next support at the 1,420 level.
For the most part, however, the key index could trend within a tight range around the 1,420 and 1,425 level for the time being. Beyond these levels, the other support and resistance are at 1,413 points and 1,430 points respectively.
Malacca Securities Research
The FBM KLCI marked the third-session decline as cautious sentiment prevailed prior to the release of Malaysia’s 1Q 2023 GDP (gross domestic product) data.
On Wall Street, investors are shifting their focus towards the technology sector in anticipation of the Federal Reserve keeping the interest rate unchanged next month. Currently, Nasdaq is relatively stronger than the Dow’s movement.
Closer to home, investors may start to position in solid fundamental stocks prior to the earnings season.
Commodities-wise, the Brent crude declined below US$75/barrel mark while crude palm oil (CPO) price hovered above RM3,600/metric tonne. Gold price remained solid above USD2,000/ounce.
The FBM KLCI ended marginally lower as the key index stayed below its daily EMA9 level after erasing all its intraday gains. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI is still hovering below 50.
The support is set around 1,400-1,410 while resistance is pegged along 1,440-1,450. – May 12, 2023
