BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
For the most part, market conditions were mostly duller last Friday as profit taking activities remained prevalent with most stocks on the slide that resulted in total losers more than twice the number of gainers.
However, the key index remained positive albeit it ended the day off its highs after it re-tested the 1,520 level and closing off the week below the level.
Meanwhile, the FBM ACE market and FBM Small Cap indices ended the week on a losing note with the indices shedding some 1.0% each.
We see market conditions remaining mixed ahead of the Lunar New Year break with selected heavyweights to continue posting gains while the broader market may stay subdued.
As it is, the key index continues to attract buying interest, particularly from foreign funds – an attempt to recoup its weaknesses in 2023.
At the same time, there are also pockets of rotational interest among the index heavyweights to keep the key index above the psychological 1,500 level.
Nevertheless, the 1,520 level may still be a difficult level to pass as market conditions are toppish that could slow its ascend.
As such, there could also be increased choppiness ahead as the key index approaches a key resistance level. Above 1,520, the other resistance is at 1,526 points while the interim supports are at the 1,508-1,510 levels.
Malacca Securities Research
With the FBM KLCI having maintained its upward tone after a two-day consolidation, we expect buying support to continue this week.
On Wall Street, the overall sentiment was boosted by stronger-than-expected earnings from META which announced its first quarterly dividend following robust ad sales in the holiday shopping period.
Also, we like Apple Inc for the release of Vision Pro headgear which may provide the next phase of growth for the technology space going forward.
This week, the market will monitor the (i) US ISM Services PMI (Purchasing Managers Index) and (ii) unemployment claims data on Thursday (Feb 8).
On the commodity markets, Brent oil fell below US%80/barrel level amid stronger greenback after the US added 353,000 jobs in January.
The FBM KLCI ended higher. However, the technical readings on the key index were mixed with the MACD Histogram forming a rounding top formation while the RSI maintains above the 50 level.
The resistance is envisaged around 1,520-1,530 while the support is set at 1,490-1,480. – Feb 5, 2024