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 retreated further yesterday but the losses were minimal after it managed to claw back most of its intraday losses.
Profit taking was still prevalent amid the continuing market pullback that was led by Sime Darby Plantation Bhd and Genting Malaysia Bhd.
In the broader market, conditions were mixed-to-lower that saw market breadth turning negative. The unsettled market conditions also resulted in traded volumes easing back below the 4 billion shares level.
We see the FBM KLCI remain largely indifferent over the near term as it continues to find further footing near the psychological 1,550 level that has proven to be more difficult to clear for the time being.
As it is, market conditions remain toppish and tethering at the overbought levels that would see further gains difficult to attain for now.
Furthermore, there are also fewer leads with market players on the lookout for more pointers from the ongoing release of corporate results to gauge their prospects for the year ahead.
Nevertheless, the sustained interest from foreign funds should help to keep the key index afloat for longer as it continues to linger close to the 1,550 level. On the downside, the supports remain at 1,540 and 1,533 points respectively with the hurdle after the immediate resistance of 1,550 points set at the 1,555 level.
Malacca Securities Research
The FBM KLCI slid lower for the session dragged by gaming heavyweights.
Meanwhile, the US stock markets ended on a negative tone as the market is taking a cautious stance for the near term ahead of several economic data to gauge the US Federal Reserve’s easing cycle going forward; this week data include (i) US GDP (Wednesday), (ii) Core PCE (Thursday), (iii) unemployment claims (Thursday) and (iv) US Manufacturing PMI (Friday).
Meanwhile, we expect buying support to return on the local front after several consolidation days as corporate earnings will be focused.
On the commodity market, Brent crude price hovered around US$80-US$83/barrel as concerns over the Red Sea persisted.
The FBM KLCI ended lower by forming a four-bar consolidation pattern. However, the technical readings on the key index were mixed with the MACD Histogram forming a rounding top formation while the RSI maintains above the 50 level.
The resistance is envisaged around 1,560-1,570 while the support is set at 1,520-1,530. – Feb 27, 2024
