BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although regional indices rose in tandem with the gains on Wall Street the night before, the FBM KLCI’s uptrend was more subdued and it was an end-of-session lift that allowed the key index to end the day on a positive note.
In the broader market, conditions were also mixed, mirroring the performance of the key index to close on a slightly negative note. Trading volumes, however, stayed above the 3 billion shares mark on Friday.
Market conditions are likely to stay lacklustre as interest among the index heavyweights are still indifferent ahead of the Hari Raya break at the end of the week.
There are also a few noteworthy leads for the market to follow and this is likely to keep he FBM KLCI subdued for longer.
There are also few catalysts from overseas bourses amid the continuing concerns over the slower economic growth, despite the easing inflationary and interest rate concerns.
As such, we see the key index continuing to drift for the time being but remain within a tight range on the back of institutional support. On the downside, the supports are at 1,430 and 1,425 points while the resistances are at the 1,438-1,440 levels and 1,445 points respectively.
Malacca Securities Research
The FBM KLCI posted mild gains amid the positive regional markets sentiment as investors anticipated a less-aggressive rate hike by the US Federal Reserve.
Following the pullback on Wall Street, investors may trade on a cautiously positive mode prior to the Hari Raya Aidilfitri festive celebration while all eyes will be on Eurozone’s and Malaysia’s inflation rate this week.
Commodities-wise, Brent crude traded above the US$86/barrel mark while crude palm oil (CPO) price hovered above RM3,550/metric tonne. Gold price remained resilient above USD2,000/ounce.
The FBM KLCI ended the week with marginal gains as late bargain hunting activities pushed the key index into the positive territory.
Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50. The resistance is pegged along 1,440-1,450 while the support is located around 1,400-1,410. – April 17, 2023
