BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
The FBM KLCI ended marginally lower yesterday as profit taking became prevalent for most of the day.
However, the key index managed to recoup most of its intraday losses towards the end of the session.
Banking heavyweights emerged as the main losers on the key index but many lower liners and broader market shares gained ground albeit the overall market breadth was negative.
Traded volumes continue to pick up pace to nearly 4 billion shares for the day amid improved trading activities.
Once again, the key index failed to mount follow through buying to re-challenge the psychological 1,500 level and this is leaving it at a mostly indifferent trend.
At the same time, the FBM KLCI’s recent moves have also seemingly decoupled from the global and regional pace and this trend may continue as domestic catalysts are still lacking for the most part.
We also see market activities beginning to wind down ahead of the Lunar New Year break that could leave the key index to drift for the rest of the week. There are supports at the 1,490 and 1,485 levels while the 1,500 level is the immediate hurdle, followed by the 1,503-1,505 levels.
Malacca Securities Research
The FBM KLCI staged a minor pullback, snapping three-session winning streak as investors took profit ahead of the Chinese New Year holiday.
Investors may take a cautious stance amid the lack of fresh catalysts environment, but the overall sentiment suggests that the downside risk is limited as the US Federal Reserve is expected to raise the interest rate at a softer pace going forward following the declining US consumer price index (CPI) data.
Meanwhile, the market is waiting for Bank of Japan’s (BOJ) interest rate decision as well as the UK and Eurozone’s inflation rate.
Commodities-wise, Brent crude traded above US$84/barrel while crude palm oil (CPO) price hovered above RM3,850/metric tonne.
The FBM KLCI retreated after three consecutive sessions of gains but managed to hold above SMA200. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI is hovering above 50.
Resistance is pegged along 1,500-1,510 while the support is located at 1,450-1,460. – Jan 17, 2023