BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities extended their ascend yesterday with the key index taking out the 1,560 level at the close albeit marginally as selective buying interest remains amid the easing Middle East geopolitical concerns.
The gains were also partly in response to the overnight gains on Wall Street. Broader market shares also extended their recovery but total winners beat losers by a narrower margin. Traded volumes improved by nearly 7.0% for the day.
Although the FBM KLCI managed to tip past the 1,560 level yesterday to its highest level since June 2022, the breakout is not convincing as yet given there are still signs of hesitation after it ended the day below its intraday high.
As it is, the recent gains were much driven by momentum trading and unless there are improvements in the country’s corporate fundamentals, it remains to be seen if the 1,560 level can be cleared convincingly, failing which the key index may consolidate for the recent gains to be digested.
In the near-term, the key index could still be attempting to clear the level, buoyed by continuing gains among key global equity indices. However, the gains could be more modest as the follow through buying interest could still be tepid.
The next hurdles are at 1,565 and 1,570 points while the supports are at the 1,560 and 1,555 points respectively.
Malacca Securities Research
Supported by banking heavyweights, the FBM KLCI ended higher for the fifth session while breaking the 1,560 level.
Similarly, positive sentiment was observed in the US stock markets as geopolitical tension faded in the Middle East while traders shifted their attention to the more positive corporate earnings season.
Post market, Tesla gapped up despite results that came in weaker-than-expectation as Elon Musk aims to start producing affordable new EV (electric cars) by 2025.
With the rebound in Wall Street, buying interest may spillover towards stocks on the local front.
On the commodity markets, Brent crude rebounded above US$88/barrel while gold price maintained around US$2,320/oz. Meanwhile, CPO (crude palm oil) rebounded for the second session and traded nearer to the RM4,000/metric tonne level.
The FBM KLCI index ended higher for the fifth consecutive day. The technical readings on the key index were positive with the MACD Histogram extending the first positive bar while the RSI maintains above 50.
The resistance is envisaged around 1,575-1,580 while the support is set at 1,540-1,545. – April 24, 2024
