BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was yet another listless session on the FBM KLCI as the benchmark index headed nowhere at the start of the new week, unlike the uptrend seen in most regional key indices.
As it is, market players stayed cautious as they await for Bank Negara Malaysia’s (BNM) interest rate decision later in the week.
Nevertheless, the lower liners and broader market shares were higher as they continue their recovery from last week’s pullback and allowing for the overall market breadth to stay positive.
We see the FBM KLCI’s near-term outlook staying muted for the time being with the upcoming interest rate decision to keep market players on a guarded mode for longer.
Furthermore, other domestic leads are also in short supply while overseas leads are also relatively dry that could still see the buying impetus in the backburner.
With the sideway trend likely to be sustained over the near term, the key index should also remain above the psychological 1,450 level for now boosted by bouts of buying support to mitigate some of the selling, particularly from foreign funds that were net sellers over the past few sessions.
Below the 1,450 level, the support is at the 1,445 level while the hurdles are at 1,460 and 1,465 points respectively.
Malacca Securities Research
The FBM KLCI edged lower as investors remained cautious awaiting the comment from US Federal Reserve’s chairman Jerome Powell prior to the congressional testimony.
Meanwhile, foreign funds continued their outflow for another session with cumulative five-day net selling standing at -RM343.2 mil.
Investors’ risk off mode prior to the congressional testimony in the US coupled with BNM’s interest rate decision may drag the local bourse into a range bound trading environment.
Commodities-wise, Brent crude traded above US$86/barrel while crude palm oil (CPO) price hovered above RM4,250/metric tonne.
The FBM KLCI slipped on the final-hour sell-down. Technical indicators, however, turned mixed as the MACD Histogram turned green while the RSI is hovering below zero. The key index held above its immediate support along 1,430-1,450 while the resistance is pegged around 1,470-1,480. – March 7, 2023
