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 retreated slightly with mild profit taking that sent some of the index-linked stocks lower amid a continuing lack of impetuses.
At the same time, conditions in the broader market turned increasingly unsettled that left many stocks succumbing to further selling pressure.
However, glove makers rose as Hartalega Holding Bhd guided that glove average selling prices (ASPs) are stabilising.
On the whole, however, market breadth remained decidedly negative with traded volumes rising to nearly 3.5 billion shares.
The near-term market conditions are likely to stay unsettled with market players now focusing on unveiling of the country’s 1Q 2023 gross domestic product (GDP) at the end of the week to gauge its effect on the Malaysian equity market. The consensus estimates points to a decent 5.0% year-on-year (yoy) growth.
The results reporting season has also started and this can serve as a guide to the corporate earnings performance for the remainder of the year.
With the continuing wait-and-see stance, however, the key index could continue to trend within the 1,430 level for the time being as it also looks to consolidate the gains from the recent rebound.
Below the 1,430 support, the other supports are at 1,425-1,428 points while the hurdles are pegged at 1,435 and 1,440 points respectively.
Malacca Securities Research
The FBM KLCI booked marginal losses amid tepid sentiment prior to the release of the US inflation data.
Investors are likely to stay in a cautious mode following a mild pullback on Wall Street overnight. Closer to home, the local market may expect a gradual recovery with foreign investors having turned net buyer (five-day averaged net buying: RM70.4 mil) for the third consecutive day.
Commodities-wise, Brent crude price advanced towards US$77/barrel while crude palm oil (CPO) price hovered above RM3,750/metric tonne. Gold price stood above US$2,000/ounce.
The FBM KLCI ended marginally lower as the key index continued to stay below its daily EMA60 level. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Resistance is pegged along 1,440-1,450 while the support is set around 1,400-1,410. – May 10, 2023
