BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was more profit taking ahead of the Hari Raya break last Thursday but mild bargain hunting towards the end of the day limited the losses on both the heavyweights and broader market shares.
The FBM KLCI’s weakness was also in tandem with bearish sentiments among regional indices on speculation that global interest rates will be lifted further.
All Bursa sector indices fell as a result with technology stocks being the biggest losers and market breadth remaining negative on low traded volumes.
The near-term market outlook is likely to stay mostly indifferent as market players slowly return after the long Hari Raya break.
For the most part, market conditions are still looking tentative with few new developments during the break for market players to follow and this could leave the FBM KLCI to continue drifting in the near term.
For now, the key index should still hold on to the 1,420 supports but it looks increasingly precarious due to the reduced market following that could prolong the on-going downtrend.
If the support is breached, the downward trend could escalate with the ensuing support pegged at the 1,413-1,418 levels. On the upside, the hurdles are at the 1,428-1,431 levels and at 1,435 points respectively.
Malacca Securities Research
The FBM KLCI marked the fourth session of losing streak as cautious sentiment continued to trigger profit taking activities prior to the Hari Raya break.
Meanwhile, Wall Street ended mixed to kick off the new week as investors await more earnings reports this week, especially from several giant technology companies.
Besides, key focus this week will include the US gross domestic product (GDP) and personal consumption expenditures (PCE) data.
Commodities-wise, Brent crude oil traded above US$82/barrel while crude palm oil (CPO) price hovered above RM3,700/metric tonne. Gold price saw a slight rebound but remained below USD2,000/ounce.
The FBM KLCI extended its decline for the fourth consecutive session after hovering mostly in the negative territory. Technical indicators turned negative as the MACD Histogram turned negative while the RSI hovered below 50.
Investors may watch for the support 1,440-1,450 with the resistance pegged along 1,400-1,410. – April 25, 2023
