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 retreated yesterday in line with the pullback among regional indices after Wall Street stumbled a day earlier on expectations that interest rates will remain elevated for longer.
However, there was sustained net foreign buying on selected index-linked stocks that minimised the key index’s losses.
Market breadth was negative as the broader market turned mixed-to-lower despite volumes picking up by a third as it remained below 3 billion shares.
The sustained buying by foreign institutions have helped to preserve the key index’s firm undertone of late albeit their buying interest thinned yesterday.
With their continuing support, the key index should stay afloat for longer and would comfortably stay above the psychological 1,500 level for the time being.
The FBM KLCI’s near-term upsides could also return after the recovery on Wall Street overnight.
However, the gains could be more modest as market players await the release of the country’s 4Q 2023 GDP (gross domestic product) tomorrow (Feb 16) for further cues.
The key index would be looking to regain its yesterday losses with the immediate target set at 1,531 points, followed by the 1,535 level. On the downside, the supports are at 1,526 and 1,520 points respectively.
Malacca Securities Research
The FBM KLCI turned sideways after the recent consolidation breakout. We believe the overall market tone is still positive and likely to head higher after the earnings season.
Meanwhile, Wall Street rebounded significantly after the sharp sell-down, led mainly by the technology sector.
Traders will be monitoring the retail sales and the US (producer price index) data that will be released over the next two days.
Although the inflation data may spike, the market will be focusing on ongoing earnings season to look for trading opportunities.
On the commodity market, Brent crude price traded slightly lower as EIA reported that US inventories surged by 12 million barrels last week which was above consensus estimates of 2.6 million barrels.
The FBM KLCI ended flat after the break out. The technical readings on the key index were positive with the MACD Histogram returning close to even level while the RSI maintains above the 50 level.
The resistance is envisaged around 1,540-1,550 while the support is set at 1,500-1,510. – Feb 15, 2024
