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 mounted a mild rebound last Friday to end the week on a positive note. The upsides, however, were mild in a relatively mixed trading session where it trended within a tight range before ending at its day high.
There was also bargain hunting on glove makers that allowed them to emerge as the day’s biggest winners. Market breadth was positive as many lower liners also rose although traded volumes remained on the low-to-moderate side.
Key index stocks could continue to make further headway over the near-term as they attempt to fortify their positions that could also keep the FBM KLCI above the 1,420 level as well as its 10-day Moving Average line.
There are few new market developments due to the Easter break but this could still allow the market positivity to extend as the recession concerns are placed in the backburner temporarily.
We also see the potential upsides to likely stay mild for the time being due to lack of fresh catalysts to entice further fresh buying interest and this is also likely to keep traded volumes modest.
As such, the near-term hurdles remain at 1,430 and 1,433 points for now. On the other hand, the 1,420 level is the immediate support, followed by the 1,415-1,417 levels.
Malacca Securities Research
The FBM KLCI rebounded as bargain-hunting activities picked up in the final trading hour. Investors may continue to eye the rising tension between the US and China.
Meanwhile, the market should focus on the US inflation data and the Federal Open Market Committee (FOMC) minutes which will be released this week to gauge the US Federal Reserve’s aggressiveness in future interest rate hikes.
On the local bourse, bargain hunters may continue to dominate. Commodities-wise, Brent crude traded above US$85/barrel while crude palm oil (CPO) price hovered above RM3,950/metric tonne. Gold price sustained above US$2,000/ounce.
The FBM KLCI defended its daily EMA20 level as the key index closed higher after slipping between positive and negative territory.
Technical indicators suggested that the momentum is mixed as the MACD Histogram extended a positive bar while the RSI hovered below 50. The resistance is pegged along 1,440-1,450 while support is located around 1,400-1,410. – April 10, 2023
