BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Profit taking took over trades yesterday as the FBM KLCI dived in tandem with the weakness among regional indices.
Consequently, the key index slipped below the psychological 1,550 level as the market approaches the end of the corporate results reporting season in addition to the lack of other market leads.
The broader market was not spared with most lower liners losing ground and total losers more than twice the number of gainers for the day. The selling volume also picked up to 4.8 billion shares.
With the key index unable to hold on to the 1,550 level and profit taking dominating trades, market conditions could become choppier with the downside risk increasing due to the thinning market confidence.
As it is, there are fewer compelling buying opportunities after the key index’s YTD (year-to-date) run-up that is compounded by its technical indicators that is becoming overbought.
Therefore, further consolidation could be in the offing to allow the recent gains to be absorbed.
Despite the possibility of more downsides, the key index could attempt to find some solace to linger close to the 1,545 level for the time being with the ensuing supports pegged at the 1,540 and 1,530 levels. Apart from the resistance at 1,550, the other is at 1,558 points. – Feb 29, 2024
Malacca Securities Research
The FBM KLCI pulled back after hitting resistance along 1,559 with profit taking mode emerged prior to the MSCI re-balancing activities that will come into effect tomorrow (March 1).
Meanwhile, the US stock markets ended softer as traders stayed cautious ahead of the Core PCE data that will be released tonight; consensus for core PCE stood at 0.4% month-on-month (mom) and it may sway the expectation for the US Federal Reserve’s first rate cut going forward.
On the commodity market, Brent crude price pulled back further as the US oil inventories rose more than expected last week while gold price secured above the US$2,030/oz zone yesterday.
In the cryptocurrency space, Bitcoin surged above the US60,000 psychological level and inched nearer towards the ATH zone of US$69,000.
The FBM KLCI retraced significantly after a breakout earlier. The technical readings on the key index were mixed with the MACD Histogram extending the first negative bar while the RSI is hovering above 50.
The resistance is envisaged around 1,565-1,575 while the support is set at 1,530-1,540. – Feb 29, 2024
