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 the week on a whimper after it closed at the psychological 1,400 level as selling pressure remained.
Its weakness was also in line with the sell-down in regional equities that were affected by lingering concerns over the state of the global banking industry.
Selling activity was still widespread among many lower liners and broader market shares as they too ended the week on a losing note with market breadth still on the negative side.
The FBM KLCI’s near-term outlook remains mostly indifferent following its inability to gather more traction as it continues to linger within the psychological 1,400 level. As a result, we expect the key index poised to remain range-bound at the above level for the time being due to the insipid buying interest.
Even if there is a rebound, the upsides could be mild as there are many market players who are still on a wait-and-see stance.
As it is, market players are still wary of the country’s economic undertone and corporate earnings performance that could soften in the months ahead.
At the same time, market players are also wary of the upcoming state elections and this could keep overall market conditions cautious for longer. On the upside, the hurdles are at 1,403 and 1,410 points while the supports are at 1,397 and 1,391 points respectively.
Malacca Securities Research
The FBM KLCI slumped, taking cue from the subdued trading activities on the regional markets.
However, the resumed buying interest on the Wall Street indices overnight may indicate investors’ confidence and could spill over to our local bourse.
Hence, we believe that some bargain hunting activities are likely to emerge despite the worries over the banking sector. Meanwhile, the US consumer confidence and the 4Q 2022 GDP (gross domestic product) growth rate should take the centre stage this week.
Commodities-wise, Brent crude traded higher towards US$75/barrel while crude palm oil (CPO) price hovered above RM3,500/metric tonne. Gold prices remained resilient above US$1,950/ounce.
The FBM KLCI has again fallen below the key 1,400 level after extending its losing streak. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI is hovering below 50.
Support is pegged along 1,370-1,380 and resistance is located around 1,420-1,440. – March 27, 2023
