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 maintained its slow ascend to end the week on a positive note. For the most part, however, buying interest was still tepid due to the absence of a definitive market direction and the buying was selective with technology names the major movers.
The lower liners and broader market shares also regained some traction to boost market breadth into the positive territory. Nevertheless, transacted volume was little changed from a day earlier.
Near-term conditions should still be supportive for gradual gains as market players may continue to nibble on some of the heavyweights amid the slightly calmer market conditions.
While the wait-and-see undertone still dominates, fresh bouts of buying could emerge as market players take advantage of the relative calmness to pick on some of the recent big losers and stocks deemed to have attractive value propositions.
This should allow key index to maintain its mildly positive streak and possibly take another stab at the 1,500 psychological level.
Still, it remains to be seen as to how firm the recovery could be due to the still benign market following with the 1,500 level may remain a formidable level to break. If the level gives way, however, the next targets are at 1,505 and 1,510 points respectively.
In the meantime, the supports are at 1,495 and the 1,490 points respectively.
Malacca Securities Research
The FBM KLCI ended the week on an upbeat note along with the regional markets, mainly lifted by the gains in the banking heavyweights following the OPR (overnight policy rate) hike.
We believe the local bourse is on pace for further upside after a broad-based rebound on Wall Street overnight as investors could be taking a view that the CPI (consumer price index) data is likely to decline with the US Federal Reserve looking at a smaller hike going forward.
Hence, the focus this week will be on the US and Eurozone’s inflation rate. Commodities-wise, Brent crude price jumped above US$92/barrel while crude palm oil (CPO) hovered above RM3,550/metric tonne.
The FBM KLCI stayed above its daily EMA9 level as the key index extended gains for the third straight session. Technical indicators, however, remained mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50.
A rise above 1,500 could put 1,510-1,530 as the next resistance level while 1,485 would serve as support followed by 1,465. – Sept 12, 2022
