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 remains on the ascend and closed within a touching distance to the 1,560 level as rotational interest on the index heavyweights continued to help it buck the mostly insipid trend among regional indices yesterday.
However, conditions in the broader market were tepid to leave gainers and losers nearly on an even keel.
Local funds were seen mopping up shares as foreign funds and retail players were net sellers with traded volumes little changed from a day earlier.
After leaving its range-bound trend within the 1,530 and 1,550 levels, the key index is making a push towards the 1,560 major resistance level.
We continue to see this as a formidable level to breach after the YTD (year-to-date) gains may have run its course and the key index is likely to need stronger catalysts for the level to be breached convincingly.
The recent upsides also appear selective and was not accompanied by a pick-up in market interest.
As a result, low participation rate could see the hurdle remaining steadfast, hence the 1,560 level may stay as a formidable level to breach over the near-term.
Instead, the key index may look to consolidate its position near the level ahead of the Hari Raya break, boosted by support from local institutional players as foreign funds could still be net sellers.
This could see the key index hover between the 1,550 and 1,560 levels in the days ahead with the interim support seen at the 1,557 points. On the upside, the resistances are at 1,563 and 1,575 points respectively.
Malacca Securities Research
The FBM KLCI started another week on a solid tone supported by the buying interest within the utilities heavyweight while the FBM Small Cap hovered around its 52-week high zone.
However, Wall Street closed mixed as the US Treasury yield hit a four-month high and the market trading cautiously ahead of a few significant economic data such as (i) consumer price index (CPI) (Tuesday), (ii) PPI (producer price index) (Thursday), (iii) jobs data (Thursday) as well as the FOMC meeting minutes (Wednesday).
These data will likely to shape the interest rate direction going forward. On the commodity front, Brent crude price fluctuated along US$88-US$91/barrel but steadied near the US$91/barrel zone.
Meanwhile, CPO (crude palm oil) price ended slightly below RM4,280/metric tonne while gold price is hovering above US$2,300/oz.
The FBM KLCI index ended higher for the third consecutive day. The technical readings on the key index were positive with the MACD Histogram extending another positive bar while the RSI maintains above 50.
The resistance is envisaged around 1,565-1,570 while the support is set at 1,540-1,545. – April 9, 2024
