BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks ended last Friday on a whimper as it lost further pace and slipped below the 1,480 level.
Market sentiments were spooked by fresh inflationary concerns which saw all Bursa Malaysia sub-indices – particularly the technology index – ending lower on concerns that earnings could taper further.
Consequently, market breadth become increasingly negative with losing stocks more than double the number of gainers.
Traded volumes also retreated by nearly a third to just over 3 billion shares for the day.
Market conditions are likely to stay subdued at the start of the week with Malaysian equities possibly mirroring the weak undertone of most key global indices amid the dearth of positive impetuses.
This could also leave the inflation and interest rate concerns to continue dominating sentiments over the near term.
At the same time, the selling pressure is likely to remain as most market players will still be on a wait-and-see stance for longer, particularly after the FBM KLCI slipped below the make-or-break 200-day Moving Average line.
The sustained selling could see the key index revisit the 1,470-1,473 support levels over the near term, with the ensuing support at the 1,465 level. The hurdles, meanwhile, are at 1,480 and 1,484 points.
Malacca Securities Research
The FBM KLCI consolidated further last Friday amidst bearish sentiment across the regional markets.
However, we believe bargain hunting activities may emerge on the local bourse after a broad-based sell-down ahead of the re-tabling of Budget 2023 although global sentiment could weighed further by renewed concerns over expectations of larger interest rate hikes going forward.
This week, investors may keep an eye on the US Federal Open Market Committee (FOMC) minutes, the US GDP (gross domestic product) growth rate (second estimates), Eurozone’s inflation rate, Malaysia’s own inflation rate as well as the re-tabling of Budget 2023.
Commodities-wise, Brent crude price hovered above US$83/barrel while crude palm oil (CPO) price climbed above RM4,100/metric tonne.
The FBM KLCI slid below EMA60, lying just above its daily EMA120 level after hovering in the negative territory for the entire session. Technical indicators turned mixed as the MACD Histogram extended a positive bar and the RSI moved below 50.
Resistance is set at 1,525-1,540 while support is pegged along 1,450-1,460. – Feb 20, 2023
