BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was a meek start to the week as the FBM KLCI slipped below the 1,540 level with profit taking leaving it in the negative territory the entire day.
The key index’s fall was also in line with the weakness among its regional peers. Although the FBM Small Cap and ACE indices posted minute gains, market breadth was negative as the selling interest dominated trades.
With few impetuses, traded volumes also slipped by a quarter to below the 4 billion shares mark for the day.
Once again, the key index was unable to hold on to the 1,540 level as selling pressure remains pronounce to leave conditions on the wayside and market players uncertain of its direction.
There remain few impetuses and this could still see market conditions on the insipid side for the time being.
This also means that the downward bias is still prevalent with the key index still susceptible to further selling as a result of the lack of fresh buying interest.
Regional conditions are still dampened by persistent concerns over China’s tech and property industries that could also affect sentiments on Bursa Malaysia, particularly on export-related companies.
Amid the continuing downward bias, the 1,535 level is still the immediate support, followed by the 1,530 level. The hurdles, on the other hand, are at 1,540 and 1.545 points respectively.
Malacca Securities Research
The FBM KLCI ended lower as profit taking activities emerged within selected heavyweights but focus was seen in small cap stocks as FBM SCAP rose 0.11%.
In the US, profit taking appeared across the board, offsetting gains in Nvidia Corp. We believe the market will continue to monitor the upcoming economic data such as the (i) US GDP (gross domestic product); (ii) unemployment claims; (iii) pending home sales as well as (iv) core PCE price (personal consumption expenditures price) index.
Despite the weaker sentiment abroad, we expect buying support to continue on the local front, especially in the small cap segment.
On the commodity markets, Brent crude rebounded to close above US$86/barrel, underpinned by on-going supply cuts by the OPEC+ members and persisting geopolitical tension in the Middle East.
The FBM KLCI index ended lower consolidating around the 1,535 level. The technical readings on the key index were negative with the MACD Histogram extending a negative bar while the RSI dipped below 50.
The resistance is envisaged around 1,550-1,555 while the support is set at 1,520-1,525. – March 26, 2204
