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 continues to make headway on Friday, buoyed by continuing buying by foreign funds on selected index linked stocks like YTL Power Bhd and YTL Corp Bhd that both registered their seventh straight day of gains.
The upsides also sent the key index to its highest level since mid-February last year with the broader market shares also sustaining their upsides and total gaining stocks more than twice the number of losers for the day. Traded volumes also stayed buoyant at 6.6 billion shares.
Although the strong up-moves are welcomed to end the dour trend that had engulfed the FBM KLCI for most of 2023, the moves may have been overdone as market conditions are becoming toppish.
For now, however, there are still no signs of any pullback as yet and this could still see the key index making further upsides as market conditions remain firm with the continuing fresh buying interest to prolong the upward streak.
Still, further upsides may become more modest as the key index has regained its 2023 losses and there is little change to Bursa Malaysia’s fundamentals.
On the upside, the 1,490 level could become a key hurdle with the ensuing resistance at 1,494 points. The supports, meanwhile, are at 1,480 and 1,477 points respectively.
Malacca Securities Research
The FBMKLCI experienced a solid start for 2024 with decent buying interest from foreign funds into the local market.
However, the US stock markets traded on a flattish tone on Friday amid a mixed set of data where the robust jobs data was offset by the softer ISM services PMI (Purchasing Managers’ Index) snapping the nine-week winning streak as the 10-year US Treasury yield spiked above 4.00%.
Also, the market was unsure and had contrasting views on when the interest rate cuts may begin.
This week, CPI (Consumer Price Index) and PPI (Producer Price Index) data will be watched closely to determine the interest rates direction.
On the local front, we believe the buying support may take a breather this week after a strong upward move last week.
On the commodity market, Brent crude price ended higher on Friday amid rising geopolitical tension in the Middle East and Red Sea regions.
The FBM KLCI ended higher, surging above the significant resistance levels. The technical readings on the key index were positive with the MACD Histogram extending another positive bar while the RSI charged above the 70 level.
The resistance is envisaged around 1,490-1,500 while the support is set at 1,460-1,470. – Jan 8, 2024
