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 slipped yesterday, ending its four-day uptrend as profit taking activities emerged.
However, the key index climbed in the morning session to as high as the 1,610 level before profit taking activities emerged later in the day.
Still, selling was mild with the key index just closing slightly lower. The broader market, however, was mixed resulting in gainers and losers almost in parity with traded volumes also little changed for the day.
Yesterday’s pullback was relatively benign with continuing mild support on many of the index heavyweights and this may still allow for the key index to preserve the psychological 1,600 level.
However, the pullback looks to be just at the beginning stages as there are fewer compelling buying opportunities over the near term due to the toppish market conditions.
Therefore, consolidation may persist over the near term as the key index could start to take a breather for the recent gains to be digested.
The unsettled conditions among key global equity indices overnight could also lead to the FBM KLCI taking the opportunity to adjust from its bout of overbought.
For now, the 1,600 level is the immediate support which is followed by the 1,595 level. The hurdles, on the other hand, are at 1,608 points and at 1,614 points respectively.
Malacca Securities Research
The FBMKLCI has turned negative with the emergence of profit taking activities after a four-day rally but the FBM70 managed to charge towards fresh all-time-high.
Over in the US, stocks traded mixed as the selected US Federal Reserve’s official statement was still maintaining a relatively hawkish view as it is believed to take more time than previously thought to lower down the inflation back to the 2% target.
Also, UBER registered an unexpected first-quarter loss that contributed to the softer sentiment for S&P500 and Nasdaq.
On the commodity markets, Brent crude traded along our initial support zone of US$81-US$83/barrel after EIA reported US oil inventories fell last week. Meanwhile, crude palm oil (CPO) could have found support along RM3,800/metric tonne.
The FBM KLCI index ended flat after ascending to a 52-week high. The technical readings on the key index were positive with the MACD Histogram extending another positive bar while the RSI maintains above 50.
The resistance is envisaged around 1,620-1,625 while the support is set at 1,585-1,590. – May 9, 2024
