BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI closed virtually unchanged yesterday as it trended within a tight in a directionless trading environment.
Notwithstanding the minute gains, sentiments were still insipid as selling actions dominated trades that left losers to overwhelm gainers by nearly a 2-to[1]1 ratio.
Lower liners and broader market shares also ended the day lower with the day’s volume remaining at moderate levels.
There is no change to the immediate market outlook as the mostly cautious stance is likely to prolong with market players still on a wait-and-see position.
As it is, market players are awaiting the Budget 2023 announcement on Friday (Feb 24) to gauge the country’s economic prospects for the remainder of the year although the overnight weakness on Wall Street could curb any positive reaction in the day ahead.
Consequently, sentiments will still be lacklustre with this possibly leaving the FBM KLCI to drift further with the 1,470 level being the immediate support. Further below, there should be firmer support at the 1,465 level which is also its recent low.
The hurdles, on the other hand, are at the 1,477 level – the 200-day Moving Average – and at 1,480 points respectively.
Malacca Securities Research
The FBM KLCI ended marginally higher as the key index reversed earlier rally into the afternoon session amid mixed regional market.
Following the heavy plunge on Wall Street overnight, we believe investors may stay on the sidelines as concerns over the interest rate hikes expectation continues to pressure market sentiment.
Nevertheless, the US Federal Open Market Committee (FOMC) meeting minutes will remain in focus and should provide more clues going forward.
Commodities-wise, Brent crude traded above US$83/barrel while crude palm oil (CPO) price hovered above RM4,150 level/metric tonne.
The FBM KLCI eked out small gains in a volatile session, booking a fourth-straight session decline. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI is hovering below 50.
Support is monitored along 1,450-1,460 while the resistance is pegged around 1,500-1,510. – Feb 22, 2023
