BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
The FBM KLCI extended its losses at the start of the week, slipping below the 1,400 with plantation heavyweights leading the key index lower on speculation that the windfall tax could be raised.
The selling also extended to most of the lower liners and broader market shares as they succumbed to further selling that left overall market breadth in the negative territory. Traded value also picked up amid the increased selling pressure.
With the FBM KLCI’s inability to hold on to the psychological 1,400 level, coupled with the incessant selling by foreign funds, the near-term outlook is likely to stay sullen.
This also means that the downside risk remains in the absence of fresh buying interest. As it is, yesterday’s mild bargain hunting gave way to sustained selling, and this could also dent hopes for a firmer market rebound over the near term as the follow through buying interest remains thin.
Consequently, the key index could consolidate further with the recent low of 1,391 points to be the immediate support. If this level fails to hold, however, the support is lowered to 1,383 points. On the other hand, the resistances are at the 1,400 level, followed by the 1,407 level.
Malacca Securities Research
The FBM KLCI drifted lower amid renewed worries on the banking crisis in the US and Europe.
However, given the overnight rally on the Dow Jones contributed by the First Citizens Bancshares-SVB acquisition deal which has lifted sentiment on banking stocks, the Asian stock markets and the local bourse are likely to move higher for the session.
Commodities-wise, Brent crude price surged above US$78/barrel mark while crude palm oil (CPO) price hovered above RM3,600/metric tonne. Gold price saw a mild pullback but stayed above US$1,950/ounce.
The FBM KLCI declined for a third consecutive session as the key index struggled to stay above 1,400. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI hovered below 50.
Support is located at 1,370-1,380 and resistance is pegged around 1,420-1,440. – March 28, 2023