BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the FBM KLCI closed virtually unchanged as it clawed back most of its intraday losses in the afternoon session to end the day with superficial losses.
For most of the day, the key index was range-bound due the directionless trading environment that saw construction stocks emerging as big losers.
Similarly, lower liners were mostly insipid due to the lack of leads which resulted in declining stocks beating gainers by a wide margin. Traded volumes were also unchanged at above 3 billion shares.
We continue to see the key index staying listless over the near-term on a holding pattern ahead of the long Hari Raya weekend.
There are still few fresh market developments for market players to follow and this could result in most key index stocks being on a sideway trend.
This should also see the FBM KLCI staying around the 1,430 level for the time being as it also attempts to build up a firmer base on the back of the continuing mild buying support.
Apart from the 1,430 support, the other support is at 1,425 points while the resistances remain at the 1,438-1,440 levels with the ensuing hurdle pegged at 1,445 points.
Malacca Securities Research
The FBM KLCI saw a mild pullback as investors remained wary of the global economic outlook and soft trading pattern ahead of the festive break while defensive sectors such as telco and utilities were clear winners.
Meanwhile, the global sentiment was positive as Wall Street could be hoping for more positive earnings report this week while regional markets may head higher as traders may be upbeat on China’ GDP (gross domestic product) growth.
Commodities-wise, Brent crude saw mild pullback towards US$84/barrel as investors mulled over potential higher greenback and interest rate while crude palm oil (CPO) traded above RM3,600/metric tonne. Gold price fell below the psychological US$2,000/ounce level.
The FBM KLCI booked marginal losses after trading in a tight range but managed to stay above the daily EMA9 level. Technical indicators, however remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Support is set around 1,400-1,410 while the resistance is envisaged along 1,440-1,450. – April 18, 2023
