BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
The FBM KLCI started the week on another firm note, taking out the 1,490 level with relative ease and ending the day at the 1,495 level as fresh buying interest was sustained among the key index constituents.
The gains also bucked the regional markets’ weakness with the lower liners also sustaining their upsides despite their already toppish conditions.
Market breadth was also positive as traded volumes climbed to nearly 7 billion shares.
Once again, the upsides on Bursa Malaysia confounded expectations as it extended its firm uptrend to break past successive hurdles and approaching the next psychological level at 1,500 points.
As it is, market sentiments are still firming up as Malaysian equities continue to buck the region’s insipid trend with bargain hunting from foreign funds, the main factor pushing up the equity prices.
However, we see this level as a formidable level to clear as market conditions are becoming toppish even as there are few signs of a consolidation as yet.
Therefore, the key index could still test the level on the day ahead but it could also prompt increased profit taking activities that could slow further gains due to the already toppish market conditions.
If the level fails to breach, the key index could consolidate to the supports at 1,487 and 1,483 points respectively. Above the 1,500 level, the ensuing hurdle is at the 1,512 level.
Malacca Securities Research
The FBMKLCI traded higher for the fourth session with solid buying interest within the utilities and banking heavyweights.
Meanwhile, Wall Street rebounded higher led by tech giants such as Amazon, Google, Apple and Nvdia after a brief decline in 10-year US Treasury yield. Apple had a solid uptick as it confirmed the sale of Apple Vision Pro by Feb 2.
This week, traders will still be monitoring the inflation data, namely the CPI and PPI to understand the direction of the interest rates going forward.
On the commodity market, Brent crude price plunged more than 3% on the back of price cuts by Saudi Arabia, off-setting the rising geopolitical tensions in the Middle East.
The FBM KLCI ended higher once again by breaking the previous resistance level. The technical readings on the key index were positive with the MACD Histogram extending another positive bar while the RSI maintained above the 70 level.
The resistance is envisaged around 1,500-1,510 while the support is set at 1,470-1,480. – Jan 9, 2024