BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malaysia stocks made a firmer comeback yesterday, preserving its uptrend and ending above the 1,480 level for the day.
The gains were largely due to the return of foreign funds that bargain hunt for some of the recent heavyweight losers, particularly among plantation stocks.
The positivity also extended to the lower liners and broader market shares, but buying interest was milder as traded volumes slipped further. Market breadth, meanwhile, was mixed.
Although the FBM KLCI’s upsides are welcomed to reverse some of the morbid performances of late, we think that the upsides could still be met by quick profit taking activities following weakness on Wall Street overnight in view of higher-than-expected US inflation reading.
This could still leave the key index in a flux with the push and pull factors to dictate its near-term performance. Therefore, we see volatility emerging again that could undo some of the gains the key index attained over the past few days.
However, there should be support at around the 1,480 level which also coincides with the 200-day Moving Average line but further below the support is at 1,475 points.
On the other hand, the hurdles are at the 1,487-1,490 levels followed by 1,493 points.
Malacca Securities Research
The FBM KLCI sustained its gains from the previous session prior to the release of the US consumer price index (CPI) data for January 2023.
However, following a mixed performance on Wall Street due to a hotter-than-expected inflation, we believe the global sentiment will remain tepid at least for the near term while looking for fresh catalysts.
Closer to home, investors may continue to focus on earnings reporting season as well as the re-tabling of Budget 2023.
Commodities-wise, Brent crude price stayed above US$85/barrel while crude palm oil (CPO) price hovered above RM3,900/metric tonne.
The FBM KLCI extended its gains for the third straight session after hovering in the positive territory for the entire session. Technical indicators, however, remained negative as the MACD Histogram extended a negative bar while the RSI is hovering below 50.
Resistance is envisaged at 1,525-1,540 while support is pegged along 1,450-1,460. – Feb 15, 2023