BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Stocks on Bursa Malaysia continues to weaken as selling dominated trades with the lack of catalysts from the revised Budget 2023 and with the results reporting season coming to an end.
The lower liners and broader market shares fared worse as the selling intensified with the FBM ACE and Small Cap indices shedding some 3.0% each to end February on a steep losing note.
As a result, losing stocks overwhelmed gainers by a nearly a 3-to-1 ratio with the selling spree having lifted the day’s volume by 50%.
Although the FBM KLCI is holding on to the psychological 1,450 level, the immediate market outlook remains unsettled as there are still few positive market developments to entice market players to stay invested.
As a result, the downside bias looks to prolong with the buying support looking increasingly thin, affected by concerns that the country’s economy may whittle over the coming months as well as the heightened possibility of further hikes in global interest rates.
Nevertheless, there appears to be some mild support for now that could keep the key index above the 1,450 level for the time being. If the level gives way, however, the supports are lowered to 1,447 points and 1,440 points respectively.
Malacca Securities Research
The FBM KLCI registered a mild loss, extending its declining streak for the fifth straight session amid pervasive external negative sentiment.
On the global front, Wall Street wobbled into the negative territory on the final day of February 2023 as consumer confidence came in below expectation.
Also, as the outlook from the US Federal Reserve remains hawkish, the upside on the global stocks market could be limited for now.
Meanwhile, we reckon the local bourse may trade in a cautious tone amid the tail-end of the earnings season as well as the lack of fresh catalysts environment.
Commodities-wise, the Brent crude traded above US$83/barrel while crude palm oil (CPO) price hovered above RM4,100/metric tonne.
The FBM KLCI dipped for the fifth straight session but the key index managed to close above the support at 1,450. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI hovered below 50.
Support is located at 1,430-1,450 while resistance is pegged along 1,500-1,510. – March 1, 2023
