BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more upsides on the FBM KLCI yesterday as it mirrored the performance of global equities that rose last Friday.
However, the gains were modest as there was still hesitancy which resulted in the key index ending the day off its day high.
Overall, market conditions also remained on a low gear with selling still prevalent among the lower liners and broader market shares. As a result, market breadth stayed negative on higher volumes that surpassed 3 billion shares.
The key index could still be attempting to break out of its recent high of 1,435 points, buoyed by calmer market conditions that may prolong the mild buying interest on selected heavyweights.
However, the 1,435 could still prove to be a formidable level to clear due to the still low market following and the lack of sustainable market catalysts to drive the market higher.
This has kept market interest at modest levels of late and could still deter the FBM KLCI from clearing the 1,435 level convincingly. Beyond 1,435 points, the other resistance remains at 1,442 points while the supports are at 1,428-1,430 levels and at 1,423 points respectively.
Malacca Securities Research
The FBM KLCI started the week on a mildly positive note as the key index took cue from the positive performances on Wall Street last Friday.
We believe the upside may sustain as the US Federal Reserve commented on a steady interest rate which means it is likely to that the Fed is hinting for a pause on the interest rate at least for the near term.
However, we expect the upside could be capped ahead of the inflation report in the US. Commodities-wise, Brent crude marched higher, trading above US$77/barrel while CPO is priced above RM3,700/metric tonne amid hot weather conditions. Gold price stayed above USD2,000/ounce.
The FBM KLCI climbed as the key index attempting to cross above its daily EMA60 level. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Next resistance is envisaged along 1,440-1,450 while the support is set around 1,410-1,420. – May 9, 2023
