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 recouped nearly all its intraday losses on Friday to end the day with minute losses as bargain hunting emerged in the afternoon session.
Part of the recovery was due to the absence of new taxes in the revised Budget 2023 which kept most of the initiatives in the original Budget announcement last October intact, thus helping to assuage concerns over more austerity measures.
Lower liners and broader market shares also rebounded towards end of the day.
With the revised Budget 2023 largely a tweak of the original Budget, we see limited impact on the market’s near-term conditions.
Instead, the key index’s near-term movement could mirror the softer performance of key global indices that are showing signs of renewed weakness.
At the same time, the on-going reporting season has headed to a finale, hence fewer leads as a result. Therefore, the downside bias looks to continue for the time being with the psychological 1,450 level could still be re-tested as fresh buying interest are still largely anaemic.
For now, we see the 1,450-level serving as a firm support after the recent sell-down is overdone as the technical indicators are nearing oversold and a rebound is due. If the selling persists, the next support is at 1,443 points while the hurdles are at 1,460 and 1,465 points respectively.
Malacca Securities Research
The FBM KLCI logged marginal losses after hovering mostly in the negative territory, taking cue from the negative biased regional markets.
Following a sharp sell-down on Wall Street in the previous week, we reckon the regional markets and the local bourse may stay rocky while investors could be looking out for fresh catalysts.
Meanwhile, we believe the downside risk could be limited following the revised Budget 2023 as investors may trade in sectors that will benefit from it.
Commodities-wise, Brent crude price remained solid above US$83/barrel while crude palm oil (CPO) traded above RM4,200/metric tonne.
The FBM KLCI edged lower after recouping most of its intraday losses. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI hovered below the 50 level.
Investors may monitor next support at 1,450 followed by 1,430 and the resistance at 1,500-1,510. – Feb 27, 2023
