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’s upside sustained for a fourth session with more bargain hunting emerging to send the key index back above the psychological 1,450 level at the close.
Market conditions also continue to improve in tandem with the upsides in many regional indices with foreign funds turning net buyers for the day.
However, the broader market remained mixed with total gainers just ahead of losing stocks. Still, the return of buying interest saw traded values climbed to 4.3 billion shares for the day.
With sustained buying interest, the upsides should persist over the near term, particularly after the 1,550 hurdle is cleared again with fairly firm conviction.
Much of the near-term impetus will be from the overnight gains on Wall Street that made headway on hopes that interest rates could be trimmed as soon as June this year.
At the same time, the return of foreign buying interest could also help to lift the key index that may now re-test its recent high at 1,559 points.
For now, we think that the level could remain a formidable level unless the buying interest strengthens further. A break of the level could send the key index to the next hurdle at the 1,560 points, followed by the 1,563 level.
In the meantime, the supports are at 1,550 points and 1,545 points respectively.
Malacca Securities Research
The FBM KLCI ended more positively above the 1,550 level after a four-day winning streak with the help of utilities heavyweight such as Tenaga Nasional Bhd.
Meanwhile, the US stock markets ended more positively with S&P500 hitting record highs despite core CPI (consumer price index) and CPI data came in slightly above expectations.
Still, the market could be looking at June for the US Federal Reserve to reduce the interest rates.
With the positive rebound on Wall Street, the buying interest may spill over towards stocks on the local front.
On the commodity markets, Brent oil crude id ranging along US$81-US$83/barrel while gold price pulled back below US$2,160/oz after the spike in CPI. Meanwhile FCPO (crude palm oil futures) continues to trade on a positive note by rising above RM4,150/metric tonne.
The FBM KLCI index continued trending upwards. The technical readings on the key index were positive with the MACD Histogram forming a rounding top formation while the RSI is above 50.
The resistance is envisaged around 1,565-1,570 while the support is set at 1,540-1,545. – March 13, 2024
