BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was a mixed day on Bursa Malaysia but the key index managed to end with minute gains. For most of the session, however, the key index oscillated between the negative and positive territories and within a tight band.
Healthcare stocks were again the main movers but many lower liners and broader market shares ended the day with minor losses.
As a result, market breadth was negative with traded volumes improving to over 3 billion shares for the day.
With the still few noteworthy market developments, we see interest on Bursa Malaysia stocks remaining lacklustre for longer, extending its mostly directionless trading pattern to the day ahead.
Market leads are still few and far in-between with participants looking for more catalysts before taking up positions among FBM KLCI listed stocks despite many constituents’ valuation being at compelling levels.
Still, we see further minute gains on the key index as there appears to be mild institutional support to keep the key index above the 1,420 level for the time being which would also serve as its main support for now.
There is an interim support at the 1,424 level while the resistances are at the 1,430 and 1,433 levels respectively
Malacca Securities Research
The FBM KLCI inched up on the back of final-hour bargain hunting activities.
On Wall Street, sentiment was mixed as investors traded cautiously ahead of the upcoming consumer price index (CP)I data (which will be released tomorrow) as well as a series of banks’ earnings reports to kick start the earnings season.
Meanwhile, we expect bargain hunting activities to continue with the anticipation for further recovery in the labour market following an improvement in the unemployment rate which fell to 3.5% in February.
Commodities-wise, Brent crude declined but remained resilient above US$84/barrel while crude palm oil (CPO) traded around RM3,850/metric tonne. Gold price fell below the US$2,000/ounce psychological level.
The FBM KLCI booked marginal gains as the key index continued to hover above daily EMA9 and 20 level. Technical indicators turned positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
The resistance is envisaged along 1,440-1,450 while support is located around 1,400-1,410. – April 11, 2023
