BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
After an indifferent start to the day, the FBM KLCI mounted a rebound in the afternoon session with renewed buying on banking stocks that lifted the key index into a positive close for the week.
However, market conditions were generally subdued as the broader market shares were broadly lower with the selling pressure remaining and resulting in technology stocks falling the most.
Market breadth was also negative as traded volumes also dipped back below the 3 billion shares mark.
Malaysian stocks may follow global stocks higher at the start of the week even as there are still few noteworthy leads to entice more market players back into the market.
As a result, the buying could become selective with laggards potentially coming to the fore after banking stocks rebounded at the end of last week.
On the whole, the upsides could be measured as market interest is still insipid and follow through buying could still be relatively benign to lift the FBM KLCI significantly higher.
There may also be mild bouts of profit taking that could slow the upsides to 1,435 points which is also a big hurdle for the key index to pass. Further above, the resistance is at 1,442 points while the supports are at 1,428 and 1,423 points respectively.
Malacca Securities Research
The FBM KLCI closed higher on Friday despite the mixed sentiment on regional markets. We reckon that the huge and widespread rebounds on Wall Street last week could boost investors’ confidence in both the regional and local bourses.
Meanwhile, some key economic indicators which will be released this week include the US inflation rate, Malaysia’s unemployment rate and Malaysia’s 1Q 2023 GDP (gross domestic product) growth rate.
Commodities-wise, Brent crude price rallied above US$75/barrel while crude palm oil (CPO) price hovered above RM3,600/metric tonne. Gold price pulled back but stayed above USD2,000/ounce.
The FBM KLCI recouped all its intraday losses and closed higher from its daily EMA20 level. Technical indicators turned positive as the MACD Histogram turned into a positive bar while the RSI hovered above 50.
Resistance is pegged along 1,440-1,450 while the support is set around 1,400-1,410. – May 8, 2023
