BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the FBM KLCI headed nowhere as it failed to find traction that left it to drift lower to the 1,430 support but nevertheless ended the day off its low.
For the most part, market conditions stayed lacklustre ahead of the extended Hari Raya holidays at the end of the week. Most Bursa sector indices also ended lower with energy stocks the biggest losers.
The broader market was mostly lower, resulting in market breadth again in the negative territory. Market volumes, however, were little changed.
We continue to see the FBM KLCI staying mostly insipid ahead of the upcoming long holidays with market interest to wane further.
Furthermore, there are also few cues from overseas bourses as they await for more corporate results to be released that could provide a gauge on their business environment for the upcoming quarters.
As such, the key index is likely to continue drifting over the near-term due to the prevailing lack of impetus with bargain hunting expected to remain light.
For now, we see the 1,430 level continuing to provide the immediate support but if it is breached, the support is lowered to 1,425 points. On the other hand, the immediate resistance remains at the 1,438-1,440 levels, followed by 1,445 points.
Malacca Securities Research
The FBM KLCI extended its decline along with most of the regional markets as the sentiment remained weak despite positive China’s GDP (gross domestic product) growth.
The local bourse may see further consolidation on the global front during the earnings season as the corporate results may be impacted from the interest rate hike environment.
Meanwhile, we believe the mixed sentiment may persist on the local front as traders may be on the sidelines ahead of the special holiday on Friday (April 21).
Commodities-wise, Brent crude price hovered above US$84/barrel while crude palm oil (CPO) price climbed above RM3,800/metric tonne. Again, the gold price notched higher above USD2,000/ounce.
The FBM KLCI trended lower to close just above its daily EMA9 level. Technical indicators, however, remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
The support is set along 1,400-1,410 while the resistance is pegged around 1,440-1,450. – April 19, 2023
