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 closed lower last Friday as an end of day sell-down sent it into the negative zone.
The selling, particularly among banking stocks, also bucked the above expectation 1Q 2023 economic performance with most Bursa Malaysia sector indices also ending lower.
In the broader market, conditions stayed insipid with the consolidation in many stocks continuing, and market breadth still in the negative territory.
Traded volume was lower as it slipped below 3 billion shares mark for the day.
Despite the positive economic performance, market conditions are still mostly indifferent and unable to mount a decent run-up to break the downward spell.
As it is, there is still apprehension over the Malaysian economy’s direction, particularly as the external sector is showing further signs of slowing that could temper the country’s growth prospects in the quarters ahead.
Under the prevailing environment, we see the sideway trend continuing for now with the bouts of selling to be supported by some mild buying to that could keep the key index above the 1,420 level for the time being.
If the weakness extends and the 1,420 support fails to hold, the support is lowered to 1,414-1,418 levels while the immediate resistance is at 1,425-1,428 levels, followed by 1,430 points.
Malacca Securities Research
The FBM KLCI posted a fourth-session decline with selected banking and industrial products & services heavyweights being targeted and led the losses.
The overall market sentiment may remain vulnerable amid global economic concern while investors await the Eurozone’s inflation rate this week.
Meanwhile, traders are focusing on the debt ceiling negotiations this week. Although we expect that the bargain hunting activities may kick in on the local bourse amid the release of more earnings reports, the upside could be limited in the near term.
Commodities-wise, Brent crude price hovered above US$74/barrel while crude palm oil (CPO) traded slightly below RM3,650/metric tonne. Gold price continued to stay above USD2,000/ounce.
The FBM KLCI slid for the fourth straight session as final-hour profit taking activities emerged. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI hovered below 50.
The support is set around 1,400-1,410 while resistance is envisaged along 1,440-1,450. – May 15, 2023