BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the key index managed to mount a rebound and ended the week on positive note after it recouped its early session losses with late buying of selected index linked stocks to also allow the key index to end the week above the 1,550 level.
In the broader market, conditions were also mildly positive with property stocks being the big movers and allowing for winning stocks to race ahead of losing ones. Traded volumes nudged up to remain comfortably above 4 billion shares mark.
Despite Friday’s firmer closing, we maintain our view that the key index is likely to stay on a sideway trend due to the absence of compelling new catalysts and buying interest to promote a more sustainable upside.
As it is, buying activity has been patchy and looks to be more of a base building exercise as well as to consolidate the gains that the key index has secured YTD (year-to-date).
With Wall Street also stumbling at the end of last week due to the still elevated inflation readings, the FBM KLCI could also surrender some of last Friday’s gains on quick profit taking activities.
This could send the key index back to the psychological 1,550 level and the base building exercise to resume. Below the 1,550 level, the other support is at the 1,545 level. The hurdles, on the other hand, are at the 1,560-1,562 levels, followed by the 1,570 level.
Malacca Securities Research
The FBM KLCI ended significantly higher on Friday led by a spike in most of the heavyweights; Telekom Malaysia Bhd ™ rose 8.51% for the session.
Meanwhile, three of the major indices in the US closed lower on Triple Witching Day with technology sector leading the decline.
This week, we believe the overall market conditions may turn cautious ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting.
Also, traders could be monitoring some upcoming data such as (i) unemployment claims; and (ii) Flash Manufacturing and Services PMI.
Despite the softer trading tone in the US, we expect the momentum to sustain on the local front, in view of the positive rebound in the regional markets lately.
On the commodity markets, Brent crude trended firmer last week above the US$85/barrel level fuelled by stronger-than-expected US demand.
The FBM KLCI index ended higher for the second consecutive day. However, the technical readings on the key index were mixed with the MACD Histogram hovering flattish along 0 while the RSI is above 50.
The resistance is envisaged around 1,565-1,570 while the support is set at 1,535-1,540. – March 18, 2024
