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 was in a largely holding pattern as it managed to recoup most of its intraday losses to also end the day at the 1,495-support level as mild buying on selected index-linked stocks emerged towards the end of the day.
Conditions in the broader market, however, were mixed on increased profit taking ahead of the Lunar New Year break that resulted in market breadth ending the day on an equal footing.
Traded volumes were also little changed, remaining below the 3 billion shares level.
There could be more downshifts over the near-term as market players could accelerate the unwinding of their short-term positions ahead of the Lunar New Year break next week.
The overnight weakness on Wall Street could also prompt the selling actions as market players may continue to lock-in gains from the recent upside even as the overall market conditions remain mildly positive.
Although the downside bias has increased, it may be mild as there is still little selling pressure. Below the 1,495 level, the ensuing supports are at 1,490 and 1,485 points.
On the other hand, the near-term hurdle is at the psychological 1,500 level, followed by 1,512 points.
Malacca Securities Research
The FBM KLCI slid as the cautious trading sentiment emerged ahead of the Bank Negara Malaysia (BNM) Monetary Policy Committee (MPC) meeting, bucking the positive regional markets performances.
The bullish sentiment on the regional markets was supported by the unchanged Bank of Japan’s (BOJ) monetary policy and optimism over China’s re-opening.
We believe traders may take a cautious approach following the weaker trading tone on Wall Street overnight and ahead of the BNM’s overnight policy rate (OPR) decision.
Commodities-wise, Brent crude traded above US$84/barrel while crude palm oil (CPO) settled higher above RM3,850/metric tonne and gold price remained above US$1,900/oz.
The FBM KLCI drifted lower and remained below the key 1,500 level. Technical indicators, however remained positive as the MACD Histogram extended a positive bar while the RSI is hovering above 50.
Resistance is monitored at 1,500-1,510 while the support is located at 1,450-1,460. – Jan 19, 2023
