BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
The key index posted a rebound yesterday in line with the upsides seen in many regional indices which tracked the gains on Wall Street the night before.
Plantation stocks were the main movers for the day, lifting the FBM KLCI back above the 1,440 level. Consumer stocks also rose as with many broader market shares also helped tip gainers ahead of losing stocks for the day.
However, much of yesterday’s gains were on thinner trades with total volumes slipping below the 3.0 billion shares mark.
Market conditions are finding some measure of stability after many stocks managed to rebound from late last month’s pullback.
With still few local leads, particularly from the recent unveiling of Budget 2024, further upsides may be more difficult to attain with market players likely to revert to a wait-and-see stance and scouring for overseas leads instead.
The key index could turn more subdued and post minor upsides over the near term as it now attempts to stay above the 1,440 before making a push to pass the psychological 1,450 level in due course.
Although there could still be upsides the gains may be benign due to the lack of fresh leads with the near-term hurdles set at the 1,445-1,447 levels prior to targeting the 1,450 resistance. The supports, on the other hand, remain at 1,440 points and 1,437 points – the latter being the 200-day moving average line.
Malacca Securities Research
The FBM KLCI rebounded with the support from plantation heavyweights amid rising crude palm oil prices.
On Wall Street, the overall trading sentiment was mixed but the technology-heavy Nasdaq index declined as the Biden administration may halt shipments of advanced AI (artificial intelligence) chips to China.
Meanwhile, closer to home, we expect buying support to return as investors could focus on Budget 2024 catalysts after mild profit taking on Monday.
Commodities-wise, Brent crude oil remains above the US$90/barrel amid the ongoing concerns on the geopolitical tension while crude palm oil (CPO) maintained around the RM3,800/MT level.
The FBM KLCI rebounded higher, maintaining above the 1,430 level. The technical readings on the key index were mixed with the MACD Histogram forming a rounding top formation but the RSI is hovering above 50.
The resistance is envisaged around 1,450-1,460 while the support is located around 1,420-1,430. – Oct 18, 2023