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 fell yesterday by slipping below the psychological 1,550 level to end at its intraday low as the selling pressure escalated in tandem with the cautious regional market conditions.
There were few leads and the market stayed tepid ahead of the upcoming US Federal Reserve meeting.
Nevertheless, the lower liner indices managed to end on a positive note with total gainers and losers almost on an equal footing. Traded volumes were also thinner but stayed above 4 billion shares mark.
For the most part, market conditions are still mostly directionless that could leave the key index on a drifting mode for longer.
However, the key index is still preserving much of the YTD (year-to-date) gains as it continues to hover near the 1,550 level and we see this trend continuing for the time being due to the absence of significant selling pressure.
The holding pattern will also permit the key index to maintain its base building efforts and to linger broadly around the 1,540 and 1,560 levels.
For now, the FBM KLCI could be angling for some near-term recovery after yesterday’s pullback with the key index angling a return back above the 1,550 level, moving in tandem with the overnight gains on Wall Street.
There is an interim resistance at 1,557 points before the 1,560 level comes into play. The supports, meanwhile, are at 1,545 and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI closed lower for the session with profit taking activities seen within selected banking heavyweights.
In the US, we noticed trading activities had slowed down ahead of the conclusion of the FOMC Federal Open Market Committee) meeting as the market is looking forward to the Fed’s statement to understand the timing of the interest rate cut.
Similarly, we opine that the overall market conditions on the local front will turn softer with profit taking activities emerging after recent rebound on small caps.
On the commodity markets, Brent crude has traded positively for the fifth session, breaching above the US$87/barrel mark. Meanwhile, the FCPO (crude palm oil futures) has pulled back but still trading above the RM4,200/metric tonne level.
The FBM KLCI index ended lower. The technical readings on the key index were mixed with the MACD Histogram hovering flattish along 0 while the RSI is above 50.
The resistance is envisaged around 1,555-1,560 while the support is set at 1,525-1,530. – March 20, 2024
