BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
After failing to re-test the 1,500 level, the FBM KLCI succumbed to a fresh bout of selling that undid all of its recent gains with the key index slipping back below the 1,490 level.
Banking stocks were the main decliners which also contributed to most of the key index’s losses.
Conditions in the broader market and among the lower liners were mixed-to-lower amid the still dearth of leads which resulted in market breadth turning negative again on volumes that were little changed.
Market conditions are likely to stay cautious in the day ahead after the steep overnight retreat on Wall Street as the weakness is also likely to permeate to Bursa Malaysia stocks.
With inflation remaining heightened, global interest rates are likely to be lifted again that could sap demand and may also lead to a slower external demand for Malaysian exporters as well as slowing the recovery process.
These concerns are likely to keep market players wary over the near term and the FBM KLCI could see further near-term weakness as a result.
The sustained selling could again send the key index lower with the next support now pegged at the 1,480-1,485 levels. If this level gives way, the ensuing supports are at 1,477 and 1,470 points respectively.
In the meantime, the resistances are at 1,490 points and the 1,500 level respectively.
Malacca Securities Research
The FBM KLCI remained beneath the key 1,500 level as profit taking activities emerged in selected banking and industrial products & services heavyweights.
We believe the market sentiment may turn negative again following a sharp sell-down on Wall Street triggered by a stubbornly high inflation which will prompt the US Fed to maintain its hawkish stance at least for the near term.
Commodities-wise, the Brent crude price hovered around US$93/barrel while crude palm oil (CPO) traded above RM3,850/metric tonne.
The FBM KLCI snapped its four-session winning streak and closed below its daily EMA60 level.
Technical indicators turned negative as the MACD Histogram extended a negative bar while the RSI hovered below the 50 level. Investors may watch for support located at 1,485, followed by 1,465 while the resistance is pegged at 1,510-1,530. – Sept 14, 2022
