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 managed to recoup most of its intraday losses to end the day with minute losses and staying above 1,430 level.
For the most part, market conditions were mixed as profit taking activities took hold, but light bargain hunting provided support to the key index.
The broader market was also mixed that left market breadth nearly equal with transport, construction and energy stocks being the big movers for the day.
Traded volumes moderated to below the 3 billion shares mark.
Although the key index managed to claw back most of its intraday losses yesterday, the near-term market conditions remain unsettled that could leave it to continue drifting for longer.
Concerns over higher US interest rates have re-surfaced despite signs of easing inflation which could still weigh on sentiments.
Consequently, market players are likely to stay defensive for now and could evade the market until there is more clarity on the interest rate direction.
For now, there appears to be mild support that could help to absorb some of the selling pressure and to keep the FBM KLCI above the 1,430 level.
However, ft the level gives way, the ensuing supports are at 1,425 and 1,420 points respectively. The resistances remain at 1,441 and 1,446 points respectively
Malacca Securities Research
The FBM KLCI halted three straight sessions of winning run as sentiment turned cautious prior to the release of the US CPI data.
Despite the slower-than-expected US inflation at +5.0% year-on-year (yoy) (vs consensus expectations of 5.2% yoy rise), we reckon that cautious sentiment may persist given the US Federal Open Market Committee (FOMC) meeting minutes were suggesting rising recession risks in the US economy.
We believe further profit taking activities may emerge in the regional markets and our local bourse.
Commodities-wise, Brent crude price rallied towards US$87/barrel while crude palm oil (CPO) eased towards near RM3,700/metric tonne. Gold price continues to trade above USD2,000/ounce.
The FBM KLCI formed a hammer candle on top of EMA9 as the key index experienced some signs of buying support towards the end of the session. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
The resistance is located at 1,440-1,450 while the support is pegged around 1,400-1,410. – April 13, 2023
