BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was more intense selling on index heavyweights yesterday that left the FBM KLCI dipping below the psychological 1,400 level at the end the day.
The selling was in tandem with regional indices that were also sold down on concerns over the US banking system. Consequently, Malaysian banking stocks also ended the day as the biggest losers.
The widespread selling was also seen among lower liners with total losers overwhelming gainers by more than a 4-to-1 ratio.
After the steep falls over the past two days which is seen as a knee jerk reaction to the banking events in the US, the key index is already oversold and an ensuing rebound is already due.
However, we still see cautiousness prevailing as market players are still mostly unsure of the market’s direction due to lingering concerns over the interest rate direction and the state of the country’s economic performance.
There are also few positive domestic corporate leads to encourage a return to the market, particularly as foreign institutions continue to trim their shareholding in Malaysian equities that is likely to prolong the morbid trend.
As a result, any bargain hunting is likely to be mild for the time being with the immediate target set at the psychological 1,400 level. Thereafter, the hurdles are at 1,406 and 1,413 points respectively. The supports, meanwhile, are at 1,390 and 1,387 points.
Malacca Securities Research
Lingering fears over the collapse of the US banks rippled through markets, dragging the FBM KLCI below the key 1,400 level.
Following a five-session rout, the local bourse is likely to see some rebound along with the regional markets as the largely-in-line inflation data in the US could ease investors’ concern on aggressive interest rate hikes next week.
Economic indicators-wise, the European Central Bank’s (ECB) interest rate decision and Eurozone’s inflation rate will be the next focus.
Brent crude price tumbled towards US$77/barrel while crude palm oil (CPO) traded above RM4,000/metric tonne.
The FBM KLCI sank for the fifth straight session and breached below the key 1,400 level. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI is hovering below 30.
The next support is located along 1,370-1,380 while the resistance is pegged at 1,440-1,460. – March 15, 2023
