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 headed north last Friday, gaining in tandem with the upsides among global stocks indices and to recapture the 1,530 level to end the week.
This helped the key index to cast aside the lower-than[1]expected GDP (gross domestic product) reading for 2023 with foreign funds providing the main support to the key index.
Lower liners also posted modest gains in tandem with the mildly improved sentiments with market breadth also staying in the positive territory. Traded volumes, meanwhile, were little changed.
The near-term outlook is likely to stay mildly positive, hence this could allow the key index to attempt a breakout of the 1,530 level again.
At the same time, market players will now look ahead to 2024’s economic prospects after a below expectation 2023 performance even as the downside risk to the country’s economy has risen again.
As it is, the market’s undertone has been largely supported by the nibbling by foreign funds on selected index-linked stocks of late and with few signs of abating as yet, their continuing support should help to keep market conditions steady for the time being.
While the 1,530 level is retested, further gains may still be a challenge due to mildly toppish market conditions that could slow its ascend.
Therefore, the resistances remain at 1,531 and 1,535 points for now with the supports also remaining at 1,526 and 1,520 points respectively.
Malacca Securities Research
The FBM KLCI continued to charge higher for the week to close firmly above 1,530 led by buying support within selected banking and transportation & logistics heavyweights.
However, the US stock markets took a beating after the PPI (Producer Price Index) data came in hotter-than-expected as this pushed back hopes for an imminent interest rate cut by the US Federal Reserve.
Nevertheless, we expect buying interest to prevail within the local front, supported by the upcoming earnings season. On the commodity market, Brent crude price closed higher for the session amid ongoing concerns over geopolitical tension.
The FBM KLCI ended higher after a two-bar consolidation. The technical readings on the key index were positive with the MACD Histogram extending a positive bar while the RSI maintains above the 50 level.
The resistance is envisaged around 1,540-1,550 while the support is set at 1,500-1,510. – Feb 19, 2024
