BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more upsides on Bursa Malaysia as the positive performance on regional and global equities spilled over to the start of the week.
At the same time, the FBM KLCI has run past the 1,580 level for the first time in two years amid the strong buying interest in YTL group of companies and selected telco and media counters.
The lower liners’ upsides, however, were more modest despite market breadth remaining positive on traded volumes that were still above the 4 billion shares level.
The FBM KLCI’s purple patch remains steadfast for now despite conditions already near overbought as there are still few signs of any imminent pullback.
As it is, the positive undertone continues to be driven by momentum trading and from the upbeat global equity market conditions that are casting aside concerns of higher-for-longer US interest rates.
This time around, much of the buying support is from the return of foreign funds to send the key index to the 1,582-resistance level.
With the market’s undertone still on a high, the above level could be breached with the key index likely to mirror the continuing gains in global equities even as near-term conditions are already toppish.
On the upside, the targets are now at the 1,588 and 1,595 levels. The supports, on the other hand, are at 1,575 and 1,570 points respectively.
Malacca Securities Research
The FBM KLCI extended its upward trend for the third session with the help of YTL-related heavyweights and the FBM Small Cap stocks charging towards their 52-week highs.
Meanwhile, Wall Street gained momentum for another session as traders focused on Tesla after it had cleared a key hurdle for self-driving software in China.
This week, the market will be focusing on key events such as (i) earnings releases from Amazon, Apple, Qualcomm and AMD, Mastercard, McDonald’s, Starbucks and Coca-Cola; (ii) the Federal Open Market Committee (FOMC) meeting (concluding on Wednesday); and (iii) jobs data.
On the commodity markets, Brent crude traded slightly below US$88/barrel in view of easing geopolitical tension while CPO (crude palm oil) price is hovering around the RM3,800-RM3,900/metric tonne zone.
The FBM KLCI index continued charging higher surpassing the 1580. 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 1,595-1,600 while the support is set at 1,560-1,565. – April 30, 2024
