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 ended last Friday a hair’s width from the 1,590 level, supported by the continuous buying interest on some of the index heavyweights.
The uptrend in many regional indices also enabled the key index to end near its two-year high.
In the broader market, the lower liners also made further headway on continuing mild buying interest. As a result, market breadth was still on the positive side.
Despite the toppish technical indicators, the key index still appears to be on a purple patch with few signs of an impending pullback.
As a result, the upsides are likely to persist boosted by the ongoing rebound on US equity markets from their recent sell-down.
At the same time, greater China stocks are also on a recovery trend that will help to sustain the regional equity markets’ performances.
This should see the key index clearing the 1,590 level with ease as it continues its ascend and would look to target the 1,595 level in the near term.
For now, the psychological 1,600 level is still a formidable level to clear and could serve as a major hurdle requiring significant buying interest for the level to be cleared convincingly.
The supports, on the other hand, are at 1,580-1,583 levels, followed by the 1,575 level.
Malacca Securities Research
With the sustained net buying interest from foreigners, the FBM KLCI managed to trade towards a fresh 52-week high, supported by the utilities sector in view of stronger electricity demand.
Meanwhile, Wall Street regained interest with softer-than-expected jobs data coupled with the positive boost from Apple’s results as well as its biggest share buyback.
However, Warren Buffett’s Berkshire Hathaway announced at its AGM that it has reduced its stake in Apple by 13% and that the group has cash, cash equivalent and short term Treasurys totalling US$189 bil (RM895 bil).
For this week, traders could be monitoring (i) unemployment claims; and (ii) consumer sentiment.
On the commodity markets, Brent crude further retraced to trade closer to US$83/barrel while CPO (crude palm oil) continues to see base support near RM3,800/metric tonne.
The FBM KLCI index ended higher to a 52-week high. 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 1,605-1,610 while the support is set at 1,570-1,575. – May 6, 2024
