BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index managed to eke out minor gains to end the day in the positive territory as market conditions remained mostly insipid, devoid of any significant catalyst.
As a result, the FBM KLCI was in the negative territory for most of the day, unable to garner much traction.
However, the broader market was more sanguine with the healthcare sector leading the gainers that also allowed total gainers to stay ahead of losing stocks for the day. Traded volumes were little changed from a day earlier.
We reiterate our view that conditions on Bursa Malaysia is likely to remain mostly insipid with the range-bound trend likely to persist.
Not only are there fewer catalysts but investor confidence remains thin due to the unsettled market environment that is leaving most market players on the wayside for now.
With fewer leads, many market players are also resorting to a wait-and-see stance, awaiting for confirmation that economic and corporate earnings outlook are on the mend before deciding on their next course of action.
There are also few corporate developments to draw investor interest and collectively, this would leave the key index to drift further. For now, the supports remain at the 1,535 and 1,530 levels while the resistances remain at the 1,540 and 1,545 levels respectively.
Malacca Securities Research
The FBM KLCI traded flat but the FBM Small Cap surged 0.47% to another 52-week high.
In the US, the Dow Jones and S&P500 closed lower for the third session as profit taking extended following release of the Consumer Confidence Index by the Conference Board; the index came in at 104.7 vs. consensus of 106.9.
Meanwhile, we believe the market may look into the Baltimore bridge accident as it might cause some spike in inflationary pressure following the halt in coal shipments.
Closer to home, we think the focus will be on the Small Cap segment as it surged to 52-week high.
On the commodity markets, Brent crude pulled back below US$86/barrel despite another attack on Russian oil refineries.
The FBM KLCI index ended flat and still consolidating around the 1,535 level. The technical readings on the key index were negative with the MACD Histogram extending a negative bar while the RSI is hovering around 50.
The resistance is envisaged around 1,550-1,555 while the support is set at 1,520-1,525. – March 27, 2024
