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’s upward streak ended yesterday with the key index giving up most of its recent gains to end the day below the 1,540 level.
Steep profit taking emerged on selective index-linked stocks like Maxis Bhd and plantation giants with foreign funds becoming net sellers again.
The broader market was mixed but gainers were still ahead of losers for the day as some sub-indices like the energy index was on the positive side. Traded volumes were little changed from a day earlier.
Just when the FBM KLCI was regaining some momentum, the renewed selling pressure placed a dent to the efforts and is leaving the key index in a state of flux again.
With the uptrend becoming undone, conditions are also turning uncertain again as this is an indication that the follow-through buying interest is still thin and the 1,550 level is proving to be a significant hurdle to clear.
This could again see the key index in a largely drifting mode as it attempts to find some support around the current levels with more impetuses required for it to clear the above hurdle convincingly.
Under the prevailing environment, the FBM KLCI is likely to linger within the 1,530 and 1,550 levels once again. The other support and resistance levels are pegged at 1,535 points and 1,545 points respectively.
Malacca Securities Research
The FBM KLCI ended softer after several index heavyweights exercised for dividends while selected telco heavyweights closed in the negative territory.
Meanwhile, the US stock markets traded mixed prior to the release of PPI (producer price index) data later tonight as inflation number will be crucial for the US Federal Reserve in determining the interest outlook going forward.
However, we expect the general tone on the local front to remain positive amid bargain hunting activities in the small cap stocks.
On the commodity markets, Brent crude experienced a breakout above US$84/barrel supported by a drop in US crude inventories and potential supply disruptions after Ukrainian attacks on Russian refineries.
Meanwhile, gold price pulled back but rebounded above the US$2,150/oz zone. For the FCPO (crude palm oil futures), the momentum continued as the price breaches above RM4,200/metric tonne
The FBM KLCI index pulled back after a four-day winning streak. The technical readings on the key index were positive with the MACD Histogram forming a rounding top formation while the RSI is above 50.
The resistance is envisaged around 1,555-1,560 while the support is set at 1,525-1,530. – March 14, 2024
