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 managed to eke-out gains to end on a positive note yesterday in an otherwise listless trading day.
It also allowed the key index to end its three-day losing streak albeit buying was selective as the broader market continues to lose pace and ended the day mostly lower.
As a result, market breadth also remained on the negative side with traded volumes staying on the thin side due to the lack of leads and the fact that many market players are still on the sidelines.
There is no change in the near-term market outlook and the lack of positive leads will continue to leave the FBM KLCI directionless for longer.
The weak overnight closing on major global equity indices will also see Malaysian equities dithering further as market players await for fresh leads on the global economy environment to gauge the outlook for upcoming corporate performances, particularly the effects on corporate earnings in the upcoming quarters.
Under the prevailing environment, the key index is likely to stay mostly range-bound between the 1,420 and 1,430 levels due to the continuing thin market interest. Below 1,420 points, the supports are at 1,416 and 1,410 points while the resistances are at 1,435 and 1,440 points respectively.
Malacca Securities Research
The FBM KLCI bounced slightly higher after the long weekend break on the back of buying momentum in selected plantation and consumer heavyweights.
However, Wall Street saw a deep decline triggered by revived banking fears and cautious tone amid technology earnings week. Thus, we believe the selling pressure may spill-over to the regional and the local bourse.
Commodities-wise, Brent crude oil price tumbled towards US$80/barrel while crude palm oil (CPO) price hovered above RM3,600/metric tonne. Gold price, meanwhile, remained below USD2,000/ounce.
The FBM KLCI rebounded, snapping a four-session losing streak but remained below its daily EMA9 and EMA20 level. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI hovered below 50.
Resistance is pegged along 1,440-1,450 while support is set around 1,400-1,410. – April 26, 2023
