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 extend its upside to end last week on the positive side.
It also managed to recoup its losses from the morning session with firm support from local institutions to help overcome the selling from foreign institutions and to buck the weakness among global indices.
In the broader market, conditions were mixed-to-lower with market breadth also on the negative side as profit-taking activities filtered in. Traded volume, however, jumped some 20% to just over 4 billion shares for the day.
It would seem that the key index is regaining some momentum after a relatively subdued performance in March and would be eyeing further near-term gains by taking advantage of improved market sentiments to stay above the 1,550 level.
However, we think the recent gains are largely portfolio adjustments for 2Q 2024 as it also allowed the key index to disconnect from overseas market conditions that are still mired by uncertainties over interest rate cuts later in the year.
For now, however, market conditions are staying mildly positive with anticipation of further upsides as the key index looks to test its recent high at the 1,560 level which could remain a formidable level to breach as more impetuses are required.
In the interim, there is resistance at 1,557 points. The supports, on the other hand, are at 1,550 and 1,545 points respectively.
Malacca Securities Research
The FBM KLCI ended the week on a firmer tone within its uptrend move. Similarly, the FBM Small Cap maintained its upward trajectory as April month is seasonality stronger.
The US stock markets managed to rebound after a sharp decline on Thursday (April 4) despite strong jobs data where US added 303,000 jobs vs consensus of 212,000 where it might delay the US Federal Reserve’s interest rates cuts decision going forward.
The expectation of a June rate cut has declined with the probability dropping from 60.4% to 48.8% after jobs data on Friday (April 5).
On the commodity front, Brent crude maintained around US$90/barrel amid OPEC+ cuts continuing and on-going geopolitical tension in the Middle East while economic activities remain robust. Besides, gold is still trading above US$2,300/oz while CPO (crude palm oil) price is hovering above RM4,300/metric tonne.
The FBM KLCI index ended higher for the second consecutive day. The technical readings on the key index were positive with the MACD Histogram extending another positive bar while the RSI maintains above 50.
The resistance is envisaged around 1,570-1,575 while the support is set at 1,535-1,540. – April 8, 2024
