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 minute gains on the FBM KLCI as it extends its gains for a fourth successive day with the nibbling on some index heavyweights continuing.
Technology stocks were again among the main movers as they maintain their recovery trend, while banking stocks also helped the key index to head higher.
Lower liners and broader market shares also benefitted from the improved sentiments, resulting in a slight improvement in trading activities and to sustain the overall positive market breadth.
The near-term outlook continues to improve, albeit gradually, that could allow the key index to make a pass at the 1,500 level again.
However, it remains to be seen if the level can be cleared as there are still few impetuses for market players to sustain their buying interest.
The low buying interest may leave the key index to preserve its slow ascend with the 1,500 level to stay as a major hurdle for the time being.
As it is, many market players are on a wait-and-see stance which could result in the FBM KLCI being on a largely sideway trend for longer.
Above the 1,500 level, there is a minor hurdle at 1,502 points with the ensuing resistances pegged at the 1,510-1,512 levels. The supports, meanwhile, are at 1,495 and 1,490 points respectively.
Malacca Securities Research
Buying momentum in selected plantation, banking, and healthcare heavyweights pushed the FBM KLCI to close for the fourth straight session.
We believe sentiment is turning positive as the regional markets and Wall Street are on a rebound mode ahead of the CPI (consumer price index) data.
We think investors may shrug off inflationary concerns and turn their focus to the upcoming Budget 2023 which will be tabled on Oct 7.
Commodities-wise, Brent crude price trended higher, trading around US$94/barrel as supplies concern mount heading into the winter. Meanwhile, crude palm oil (CPO) traded above RM3,650/metric tonne.
The FBM KLCI extended gains from past week but continued to stay below the key 1,500 level.
Technical indicators, however, remain mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50. The key index is heading towards resistance at 1,510-1,530 while the support is located along 1,465-1,485. – Sept 13, 2022
