BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more upsides among index-linked stocks last Friday that allowed the key index to re-capture the 1,600 level and to end the week on a positive note as well as to buck the region’s mostly weaker trend.
Banking stocks were again the main movers on prospects of higher interest rates, but many lower liners and broader market shares slid to leave market breadth on the negative side.
Market participation also thinned further as market players mostly stayed on the sidelines.
Although the FBM KLCI managed to end the week on the positive side, there could be renewed selling following Wall Street’s stumble at the end of the last week that is likely to permeate to the local market.
As it is, the FBM KLCI’s recent recovery was not overwhelming and on relatively low volumes that may still leave markets to drift again.
Also, the buying strength remains benign, and this is also likely to leave the market directionless for longer.
Consequently, there could also be quick profit taking actions in the interim that is likely to see the key index slipping back below the 1,600 level to start the week.
With the selling pressure still light, however, we think the downsides could be slight with the 1,590-1,595 levels to serve as the near term supports. On the other hand, the resistances are at 1,605 and 1,610 points respectively.
Malacca Securities Research
The FBM KLCI registered its third-session gains on Friday as optimism in banking heavyweights overshadowed concerns over weakness across regional markets.
However, we expect the overnight tumble on Wall Street to weigh on the local sentiment, especially within the technology sector as the Nasdaq fell below the key 13,000 level.
Meanwhile, we expect the Indonesia banning export of its palm oil to ease domestic shortages of cooking oil to boost the sentiment for crude palm oil futures (FCPO); the FCPO traded above RM6,300/metric tonne last Friday while Brent crude it is hovering above the psychological US$105/barrel level.
On Friday. the FBM KLCI marked its third-session of gains as the key index climbed back above the 1,600 level. Technical indicators, however, remained mixed as the MACD Histogram was below zero while the RSI hovered above 50.
The next resistance is pegged around 1,620, while 1,600 has turned support followed by 1,580. – April 25, 2022
