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 closed easier yesterday as there were still few noteworthy leads for market players to follow and many continued to stay on the sidelines.
As a result, the key index drifted lower from the start even as it managed to recoup most of its intraday losses at the close.
The broader market performance was also mixed-to-lower due to the reduced market interest with total volumes still below the 3 million shares mark and little changed from a day earlier. Market breadth was also negative.
We see market conditions remaining indifferent over the near term with the key index to stay range-bound for longer.
As it is, there are still few noteworthy leads for market players to follow while leads from overseas sources are also thin that would leave overall market conditions subdued.
Back home, leads are also scant with Budget 2024 which is to be unveiled next month being the next focus that could also determine the FBM KLCI’s longer term direction.
In the interim, the key index is likely to continue its sideway trend within the 1,450 and 1,460 levels over the near term and consolidating the gains it attained since the start of 2H 2023.
While fresh buying is still lacking, selling pressure is also relatively benign for now with mild buying support able to help the key index to preserve the psychological 1,450 level for now.
Below that, the other support is at 1,443 points while the resistances remain at the recent highs of 1,460-1,463 levels, followed by 1,472 points.
Malacca Securities Research
The FBM KLCI ended flat but observed some bargain hunting activities within selected index members, thus forming a hammer candle while Wall Street traded mixed with selling pressure picked up in the technology sector despite Apple’s ‘Wonderlust’ event.
We believe the market is focusing on the upcoming CPI (consumer price index) and PPI (producer price index) data that will be released later today and tomorrow respectively.
Should there be any pick up in the inflation numbers, this may provide pressure to the stock markets with the anticipation of a more hawkish tone from the US Federal Reserve.
Commodities-wise, Brent crude formed a pennant breakout above the US$90/barrel level while crude palm oil (CPO) prices sank below the RM3,700/metric tonne level.
The FBM KLCI ended flat for the second session. The technical readings on the key index were mixed with the MACD Histogram extended another negative bar but the RSI is still hovering above 50.
The resistance is located around 1,465-1,470 while the support is set around 1,430-1,440. – Sept 13, 2023
