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 ended 2023 on a softer note, giving up some of the gains earlier in the week on profit taking activities.
As a result, the FBM KLCI shed 2.8% for the year although it managed to recoup some of its steep losses earlier in the year.
Most broader market shares were also lower at the end of last week with telco and media stocks being the main losers and causing market breadth to turn negative.
However, traded volumes were some 10% higher from a day earlier.
The key index is likely to start the year on an indifferent note with much of the insipid market trend carrying over from last year to keep market conditions on a subdued note again.
As it is, leads are still far and in-between with market players pondering its direction as there remains no change to the fundamentals of the Malaysian stock market.
There are also few noteworthy overseas leads to provide the buying impetus on Bursa Malaysia stocks.
Under the prevailing environment, the key index is likely to drift further, particularly after it failed to re-test its recent high levels that could lead to some market exhaustion.
The FBM KLCI is likely to trend within the 1,450-1,460 levels for the time being due to the prevailing indifference with the other support and resistance levels located at 1,452 and 1,458 points respectively.
Malacca Securities Research
The FBM KLCI ended slightly lower on the final day of 2023 amid profit taking activities. For the year, it has dropped 2.7%, extending the losses for the third year in a row.
However, the US stock markets ended with a bang as three of the major indices charged strongly for the year.
Despite weaker closing towards the final day of the day; Dow Jones is closing near an all-time-high while the S&P500 and Nasdaq are just shy of 1% and 8% from their respective all-time-high levels.
Closer to home, PMX will be launching the PADU (central database hub) system which will consist of individual profile and household details. This could provide a comprehensive view towards crafting the subsidies for the population.
On the commodity markets, Brent crude traded around the US$77/barrel mark, closing the year with a 10.4% drop as demand concerns outweighed the geopolitical tension risk.
The FBM KLCI ended lower. However, the technical readings on the key index were slightly positive with the MACD Histogram forming a rounding bottom formation while the RSI maintains above the 50 level.
The resistance is envisaged around 1,470-1,480 while the support is set at 1,440-1,450. – Jan 2, 2023
