BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities regained some traction yesterday to recoup some of its losses at the start of the week.
Mild bargain hunting emerged on selected technology, banking and healthcare stocks to help the key index to close higher.
This also allowed market breadth to turn positive as many broader market shares also nudged higher.
However, market participation continues to dwindle amid the still broadly cautious market environment.
Stocks on Bursa Malaysia are likely to endure further volatility following the overnight weakness among major global indices.
As it is, overseas events are continuing to dictate the local market’s movements due to the absence of domestic leads.
Consequently, the weakness is likely to keep market conditions guarded for the time being as well as sustaining the pressure on local stocks for longer amid heightened concerns over slowing economy and rising interest rates coupled with the increased threat of a prolonged war in Eastern Europe.
This could prompt quick selling actions on stocks that rebounded yesterday and leave others to drift for longer.
In the process, the key index may revisit the 1,590 support and if that happens, the next support is located at 1,585 points. Meanwhile, the immediate hurdle is still the 1,600 level followed by 1,605 points.
Malacca Securities Research
The FBM KLCI staged a rebound amid mixed regional market, powered by bargain hunting activities following Monday’s decline.
However, we anticipate a further downside risk on the local bourse following the steep slide on Wall Street overnight, especially within the technology sector.
Meanwhile, investors may position themselves in companies with solid earnings prospects ahead of the earnings season. Crude palm oil futures (FCPO) was traded above RM6,400/metric tonne while the Brent crude price sustained above US$100/barrel.
The FBM KLCI rebounded back above the daily EMA9 level albeit volatility remained in place. Technical indicators are more encouraging as the Histogram has turned into a positive bar while the RSI is hovering above the 50 level.
The next support level is located at 1,580 while the resistance is pegged along 1,600-1,620. – April 27, 2022
