BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities started 2Q 2024 on a positive note with the FBM KLCI also re-capturing the 1,540 level at the close.
The key index’s gains were in line with the upsides among regional equities that were buoyed by hopes of a recovery in their manufacturing activities.
Most Bursa sector indices also ended higher and this again saw gainers beating the losers for the day. There was a slight pick-up in traded volumes that stayed above 3 billion shares. units.
The positive start to the new quarter is encouraging as the key index continues to build up a base within the 1,530 and 1,550 levels that could serve as a potential springboard for further gains over the coming months, particularly when global interest rates are reduced and the economic and corporate earnings outlook improves.
Although yesterday’s gains are welcomed, we see the key index remaining range-bound at the above levels for now as there are still few noteworthy catalysts to allow it to convincingly clear the 1,550 level after the key index has caught up the regional equities’ 2023 gains.
Still, there may be some more near-term gains as the key index looks to re-test the immediate hurdle at the 1,550 level, riding on the global equities positive start to the quarter. Thereafter, the resistances are at 1,553 points and the 1,557-1560 levels. The immediate support is at 1,540 points, followed by 1,535 points.
Malacca Securities Research
The FBM KLCI rebounded yesterday for the second consecutive day while the FBM Small Cap charged towards another 52-week high.
Meanwhile the US stock markets ended on a mixed note with the Dow Jones and S&P 500 dragged lower amid worries over the timing of interest rate cuts by the US Federal Reserve after a stronger-than-expected manufacturing that pushed Treasury yield higher.
Moreover, the US dollar index headed higher for another session, hovering around the 105 zone. On the commodity markets, Brent crude traded positively above the US$87/barrel after factoring in positive demand signals from China and tight supply while the FCPO (crude palm oil futures) price is hovering along the RM4,250/metric tonne zone.
The FBM KLCI index ended higher. The technical readings on the key index were turning positive with the MACD Histogram forming a rounding bottom formation while the RSI has crossed above 50.
The resistance is envisaged around 1,560-1,565 while the support is set at 1,525-1,530. – April 2, 2024
