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 rebounded further with the key index ending the day close to the 1,545 resistance level on continuing institutional support albeit foreign funds were still the net sellers.
Selective buying interest were seen on index heavyweights like Genting Bhd, Press Metal Aluminium Holdings Bhd and CelcomDigi Bhd.
The renewed buying interest where total trades improved by some 20% from last Friday also enabled many lower liners to end the day on a firmer note. At the same time, market breadth also turned positive.
Despite the sustained gains, we continue to think that the market is still in a state of flux pending more positivity to emerge following the strong YTD (year-to-date) gains that have seen the FBM KLCI emerging as the top performer among regional indices.
As it is, the gains have allowed the benchmark index to play catch up to its regional peers’ strong performances a year ago.
It would now require further catalysts to allow the key index to take to the next level due to the already fair valuations, be in the form of improved corporate earnings prognosis or firmer economic outlook.
Under the prevailing environment, we still see a largely sideway trend with the key index to continue trending within the 1,530 and 1,550 levels for now. Beyond these levels, the other support and resistance levels are at 1,538 and 1,556 points respectively.
Malacca Securities Research
The FBM KLCI continues to rebound higher with buying support seen within selected banking and PETRONAS-related heavyweights.
In the US, Wall Street traded mixed prior to the data-heavy week as traders will be monitoring the (i) US CPI (consumer price index); (ii) US PPI (producer price index); (iii) retail sales; (iv) unemployment claims; (v) Empire state manufacturing index; and (vi) consumer sentiment.
We believe the release of CPI and PPI data may sway the interest rate outlook. Given the neutral tone in the US, we believe buying interest on the local front may be mild.
On the commodity markets, Brent crude is still trading sideways, ranging along US$81-US$83/barrel while gold price has stagnated along the US$2,180/oz zone but its uptrend remains intact. Meanwhile, the FCPO (crude palm oil futures) has breached the RM4,100/metric tonne level with a pick-up in momentum.
After forming a hammer candle on the FBM KLCI, the key index continued trending upwards. The technical readings on the key index, however were negative with the MACD Histogram extending another negative bar while the RSI is approaching 50.
The resistance is envisaged around 1,555-1,560 while the support is set at 1,525-1,530. – March 12, 2024
