BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was no reprieve for Bursa Malaysia stocks as they continue to slide in tandem with global equities amid the escalating geopolitical tensions in the Middle East.
The selling was widespread as losers again thumped gainers by a wide margin – more than six-fold as market participations continue their flight to safety.
The lower liners and broader market shares were the most affected with the FBM Small Cap and FBM ACE indices each shedding 2.3% with volumes spiking to nearly 5 billion shares.
The cautious market conditions look to continue dominating sentiments over the near-term despite some signs of stability in key overseas equity markets following the slight easing of tensions in the Middle East.
This could help to also ease some of the selling pressure albeit there remains few noteworthy buying interest for now as market players could continue to stay on the sidelines until there is further clarity on its direction.
Still, with the selling abating, it could help the key index to find some solace and encourage bargain hunting even as the overall market conditions are still tentative.
As such, the 1,530 level should provide some measure of support amid the subsiding selling pressure with the ensuing support pegged at 1,525 points. On the upside, the resistance is the 1,540 level, followed by the 1,548 level.
Malacca Securities Research
The selling pressure continued for the fourth trading day on the FBM KLCI while the FBM Small Cap pulled back from its 52-week.
Meanwhile, the US stock markets traded flat yesterday after US Federal reserve chairman Jerome Powell commented there has been a “lack of further progress” this year on inflation.
We believe the market is pricing in lesser rate cuts for 2024, hence contributed to the spike in US Treasury yields.
On the commodity front, Brent crude price continues to trade along US$90/barrel while gold price maintained its uptrend move above US$2,380/barrel on the back of unresolved tension in the Middle East.
Meanwhile, crude palm oil (CPO) price traded below RM4,100/metric tonne as the market is pricing in softer demand after Eid al-Fitr festive buying.
The FBM KLCI index ended lower for the fourth consecutive day. The technical readings on the key index were negative with the MACD Histogram forming a rounding top formation while the RSI maintains below 50.
The resistance is envisaged around 1,550-1,555 while the support is set at 1,515-1,520. – April 17, 2024
