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 posted decent upsides at the start of the week in tandem with the strong gains on major global indices that also lifted the key index to its highest level since the start of the year.
The gains also saw the key index move past the 1,490 level with almost all Bursa Malaysia sector indices closing higher on the improved market sentiments.
The lower liners and broader market shares also made headway with market breadth in the positive territory albeit the participation rate was mostly unchanged.
We see the broad market sentiments remaining resolute for the time being, boosted by easing inflationary expectations and China’s re-opening potentially bolstering the region’s economic activities.
This should still provide some near-term positivity to the market as market players may still be looking at some laggards to add to their portfolios.
However, a mild consolidation could be in the offing after Wall Street’s retreat overnight that we see prompting some quick profit taking activities among some of yesterday’s gainers.
As a result, the 1,490 points level has become the immediate support, followed by the 1,483 level. On the upsides, the resistances are at 1,495 and the psychological 1,500 level respectively.
Malacca Securities Research
The FBM KLCI mounted solid recovery in tandem with the regional peers, cheering the positive movements on Wall Street last Friday as the re-opening of China borders lifted investors’ sentiment.
Should the key index sustain above the SMA200 zone, the sentiment will likely turn more bullish over the near term.
However, given the emergence of cautious sentiment on Wall Street overnight due to lingering worries over global inflation, it may cap the upside potential on the local front.
Commodities-wise, Brent crude price climbed above US$79/barrel while crude palm oil (CPO) hovered above RM4,000/metric tonne.
The FBM KLCI staged a strong rebound to close above its SMA200 level. Technical indicators, however remained mixed as the MACD Histogram extended a negative bar while the RSI is above 50.
Should uptrend move remain intact, the FBM KLCI may retest the 1500-1,510 zone while the support is located around 1,450-1,460. – Jan 10, 2023
