BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Profit taking activities escalated yesterday ahead of the extended Hari Raya holidays, sending the FBM KLCI back below the 1,430 support and to its lowest level in two weeks.
Selling was prevalent in the absence of new leads and also following the trend of regional bourses to end lower.
The broader market followed suit as many succumbed to the increased selling pressure, resulting in losers more than doubled the number of winning stocks for the day. Traded volumes, however, were little changed.
Market conditions are likely to stay insipid with the long weekend starting tomorrow.
With few new corporate developments, coupled with a still cautious market undertone after the country reported slower international trades, the FBM KLCI is set to drift further with the downside bias to also remain after it failed to stay above the 1,430 support-turned-resistance level.
Market interest is also likely to thin further and leave the key index to continue on its mostly downward streak. This could also mean that the 1,425-support level may not hold for too long and if so, the support will be lowered to 1,420 and 1,417 points respectively. On the upside, the other hurdle is at 1,435 points.
Malacca Securities Research
The FBM KLCI drifted south, marking the third-session of decline along with the weaker regional markets’ sentiment ahead of the Hari Raya public holiday while foreign funds turned net sellers for the second successive session with five-day cumulative net selling value standing at RM46.6 mil.
Given the muted tone on Wall Street, we expect the regional markets and local bourse to continue trading in a range-bound manner. Commodities-wise, Brent crude price slid towards US$82/barrel, crude palm oil (CPO) traded above RM3,750/metric tonne while gold price fell below US$2,000/ounce amid strengthening greenback.
The FBM KLCI slid below its daily EMA9 and EMA20 level amid continuous profit-taking activities. Technical indicators turned mixed as the MACD Histogram extended a positive bar while the RSI hovered below 50.
The support is pegged along 1,400-1,410 while the resistance is set around 1,440-1,450. – April 20, 2023
