BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Despite lingering in the negative for most of the day, the FBM KLCI managed to end the day on a upbeat note with late buying on selected telco stocks sending the key index higher for the fourth succession day.
The gains also allowed the FBM KLCI to buck the mostly lower regional indices where sentiments were affected by Wall Street’s weak closing.
Many lower liners also regained their upward traction but market breadth remained negative. Traded volumes rose some 10% for the day.
The FBM KLCI has done well to extend its gains to clear the 200-day Moving Average that could see the gains extending as market sentiments are also showing further signs of improvements.
As it is, foreign institutional buyers are renewing their buying interest on some of the beaten down market leader. This has allowed the market’s undertone to look firmer that could also provide the impetus to sustain the near-term uptrend.
Furthermore, the upsides could be fortified by the overnight gains on Wall Street, and this could allow the key index to make a fresh attempt at the 1,490 level.
If the level is cleared, the next target would be the 1,493 level. On the downside, there is support at the 1,485 level, followed by the 1,480 level which is also the 200-day Moving Average line.
Malacca Securities Research
The FBM KLCI outperformed the regional markets on the back of a final-hour bargain hunting as well as the inflow from foreign investors.
While Wall Street notched higher overnight, we believe global sentiment could remain shaky in view of the strong retail data which might indicate potential interest rate hikes by the US Federal Reserve going forward.
However, closer to home, investors might be relatively positive prior to the earnings season and the re-tabling of Budget 2023.
Commodities-wise, Brent price stayed above US$85/barrel while crude palm oil (CPO) price hovered above RM3,900/metric tonne.
The FBM KLCI registered its fourth straight session of gains. Technical indicators however were mixed as the MACD Histogram extended a negative bar while the RSI is hovering above 50.
Resistance is monitored at 1,525-1,540 while support is pegged along 1,450-1,460. – Feb 16, 2023