BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the key index staged a rebound in the early session, conditions turned weaker in the afternoon session that sent the key index lower at Friday’s close and staying below the 1,420 level.
There was renewed selling pressure on banking and plantation stocks that sent the FBM KLCI lower while the broader market shares were mixed.
Still, market breadth remained in the negative zone with a slight increase in traded volumes for the day.
We see market conditions staying insipid, hampered by the lack of catalysts and market players remaining on the sidelines for the time being.
As it is, domestic leads are still far and in-between with lingering concerns over the country’s economic outlook still dictating market sentiments.
Furthermore, there are still concerns over further interest rates hike with the US Federal Reserve having maintained a hawkish slant that could compel Bank Negara Malaysia (BNM) to also lift interest rates in due course.
Consequently, the FBM KLCI is likely to continue drifting for the time being with the immediate support pegged at 1,413 points, followed by the 1,410 level. On the other hand, the resistances are at 1,420 points and 1,425 points respectively.
Malacca Securities Research
The FBM KLCI retreated despite the rally on Wall Street as sentiment was dragged down by selling pressure in the financial and plantation heavyweight.
Investors may remain wary following the decline on Wall Street after First Republic was sold to JPMorgan.
Meanwhile, the US Federal Reserve and European Central Bank (ECB) as well as Bank Negara Malaysia (BNM) will be making their interest rate decisions this week, thus softer trading activities on the overall markets can be expected.
Commodities-wise, Brent crude price hovered below US$80/barrel while crude palm oil (CPO) traded above RM3,330/metric tonne. Gold price hovered above US$1,980/ounce.
The FBM KLCI retreated as the key index remained in a range-bound move below its daily EMA9. Technical indicators as the MACD Histogram extended a negative bar while the RSI hovered below 50.
Resistance is pegged along 1,430-1,440 while the support is located around 1,400-1,410. – May 2, 2023
