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 continues to rebound, starting the week above the 1,490 level. However, the gains only emerged in the afternoon session with the return of foreign funds after an uneventful morning that saw the key index losing ground.
The recovery also extended to the lower liners and broader market shares with the FBM ACE and FBM Small Cap indices regaining more traction.
With the continuing recovery, market breadth stayed positive for a second day.
There are hopes for the recovery to sustain over the near term as market conditions continue to find solace after last week’s pullback.
Market sentiments are also on the mend with the ongoing recovery seeing the return of more bargain hunting activities that could help to extend the ongoing recovery.
At the same time, the positivity among key global indices overnight would also encourage some more fresh buying impetus on the FBM KLCI constituents and to make further headway.
The recovery could also allow the key index to possibly retest the psychological 1,500 level once again.
In the interim, there are resistances at the 1,492-1,495 levels before the 1,500 level comes into play again. The immediate support is located at the 1,490 level, followed by the 1,485 level.
Malacca Securities Research
The FBM KLCI extended the rebound for the second session as buying support emerged within selected index heavyweights within the banking and utilities sector following the small-cap and lower liners sell-down started two weeks ago.
Meanwhile, the US stock markets headed for another round of rally to close above 38,000 points for the first time as the US 10-year Treasury yield dipped ahead of several important key economic data such as the (i) US GDP (gross domestic product), (ii) core PCE (personal consumption expenditures) Index, and (iii) US PMI (purchasing managers’ index).
Given the positive rally on Wall Street, we believe the buying interest may persist on the local front. On the commodity markets, Brent crude spiked near the US$80/barrel mark after a drone attack on a Russian port in the Baltic Sea.
The FBM KLCI ended higher for the second consecutive session. The technical readings on the key index were however mixed with the MACD Histogram extending another negative bar while the RSI maintains above the 50 level.
The resistance is envisaged around 1,510-1,520 while the support is set at 1,460-1,470. – Jan 23, 2024
