BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malaysian stocks retreated at the start of the week, losing ground on profit taking after a firm rebound and in tandem with Wall Street’s weaker performance last Friday.
However, the pullback was relatively benign due to the sustained buying from foreign funds who were net buyers again, thus provided support to the market’s undertone.
The boarder market was mixed with losers just ahead of losing stocks while traded volumes were some 16% lower than Friday’s total.
We see the key index remaining within a narrow range as it continues to build up a base around the 1,450-1,463 levels for the time being.
As it is, there are still few impetuses for the key index to head beyond the upper range of its range-bound trend with the lack of leads and the corresponding buying interest.
At the same time, however, the selling is also relatively benign that is helping to preserve the FBM KLCI’s current trajectory and to stay above the psychological 1,450 level.
Consequently, we see the wait-and-see stance prolonging as market players await for the upcoming US interest rate decision in the coming days that could set its longer-term direction.
In the interim, there will be support at the 1,455 and 1,450 levels while the other resistance is located at the 1,465 level.
Malacca Securities Research
The FBM KLCI had turned slightly lower after the quadruple witching day last week. We understand that Wall Street also trended sideways ahead of the Federal Open Market Committee (FOMC) meeting.
Given the external events such as the FOMC will only be concluded tomorrow, we expect trading activities may slow down for the session on the local front while attention may be shifted towards the domestic catalysts such as the National Energy Transition Roadmap (NETR), New Industrial Master Plan 2030 (NIMP 2030) as well as the recent memorandums of understanding (MOUs) that were signed over the weekend.
Commodities-wise, Brent crude has continued its uptrend move above the US$94/barrel leve1 while crude palm oil (CPO) prices closed below the RM3,800/metric tonne level.
The FBM KLCI traded flat while maintaining above the 1,450 psychological level. Also, the technical readings on the key index were positive. The MACD Histogram has formed a rounding bottom formation while the RSI is hovering above 50.
The resistance is located around 1,465-1,470 while the support is envisaged around 1,430-1,440. – Sept 19, 2023