BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks continued on with their losing streak with the key index slipping below the 1,430 level yesterday on the back of the escalating selling pressure, particularly on banking stocks that emerged as the biggest sector loser for the day.
The dour market conditions were also in tandem with the weakness in regional indices that are still mired in cautiousness.
Similarly, the broader market also continues to lose ground to leave overall market breadth still decidedly negative.
With few prevailing impetuses, the selling pressure is likely to persist and pile on more pressure on the key heavyweights.
As it is, market players are still wary of the country’s economic and political undertone – and coupled with few noteworthy corporate developments – the market is devoid of catalysts to provide the much-needed lift.
Consequently, selling is likely to remain the dominant trend for the time being and the FBM KLCI looks to consolidate further.
Any rebound could also be mild amid the lack of market following with the near-term target set at the 1,430 level, followed by the 1,435 level which is proving to be a formidable level to clear for the time being.
On the other hand, the supports are at 1,420 and 1,413 points respectively. – May 11, 2023
Malacca Securities Research
The FBM KLCI slid further, tracking the subdued trading tone across the regional bourses as China’s disappointing trade data weighed on the sentiment while investors were trading cautiously prior to the US inflation data.
With the latest CPI (consumer price index) data showing signs of easing inflationary pressure, investors are likely to turn more optimistic on the technology sector with the US Federal Reserve likely to pause on rate hikes next month.
Commodities-wise, Brent crude oil traded above US$76/barrel while crude palm oil (CPO) price hovered above RM3,700/metric tonne. Gold price continued to stay above US$2,000/ounce.
The FBM KLCI sank to close below its daily EMA9 and EMA20 level. Technical indicators were mixed as the MACD Histogram extended a positive bar while the RSI hovered below 50.
The key index may continue to consolidate between its resistance along 1,440-1,450 with the support set around 1,400-1,410. – May 11, 2023
