BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI managed to recoup all of its intraday losses to end the day with superficial gains, coming from an end-of-day buying on selective stocks in the banking and energy sectors.
For the most part, however, market conditions were insipid as they struggled to find traction with profit taking continuing on many of the broader market shares that also left total losers twice the number of gainers.
At the same time, market interest was also thinner with traded volumes still below 3.0 billion units.
The key index is still on its range-bound trend at the start of the week and the trend is set to continue for the time being as it looks to be on a base-building trend.
Market conditions are still relatively indifferent with market players scouring for new leads to sustain a new trend albeit the undertone is much improved on reducing the odds of further global interest rate hikes amid the steadier CPI (consumer price index) readings and the corresponding reduced recession concerns.
However, there also remains few noteworthy leads to provide the lift for the market, particularly from the local front and this could leave the key index to preserve its drifting trend for the time being.
On the upside, the resistances remain at the recent highs of the 1,460-1,463 levels, followed by the 1,472 level. The supports also remain at the psychological 1,450 level and at 1,443 points.
Malacca Securities Research
Overall, the FBM KLCI traded flat as investors were assessing the midterm review of the 12th Malaysia Plan (12MP).
Meanwhile, Wall Street gained momentum despite heading into several key economic data such as CPI, PPI (Producer Price Index) and retail sales.
However, do note that the Federal Open Market Committee (FOMC) meeting will be held next week, thus prompting traders to stay cautious ahead of the event.
Closer to home, we think the local bourse may perform on a positive note after Economy Minister Rafizi Ramli elaborated further on the 12MP on the national TV station by reiterating that the government will be focusing on five high-growth high value sectors (HGHV) in addition to the buying interest that may spill over from Wall Street.
Commodities-wise, Brent crude maintained its firm trading tone above the US$90/barrel level while crude palm oil (CPO) prices is still trading below the RM3,800/metric tonne level.
The FBM KLCI ended flat after forming a bearish candle on Friday. Meanwhile, the technical readings on the key index were mixed with the MACD Histogram extended another negative bar but the RSI is still hovering above 50.
The resistance is located around 1,465-1,470 while the support is set around 1,430-1,440. – Sept 12, 2023
