BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Stocks on Bursa Malaysia marched further ahead yesterday with the FBM KLCI rising to its highest level in nearly three weeks, casting aside the tariff concerns as the selling by foreign funds ebbed yesterday.
There were continuing bargain hunting, particularly on construction stocks, that helped sustain the key index’s recovery.
The lower liners also climbed but traded volumes were lower ahead of the upcoming Hari Raya break albeit market breadth turned positive.
The ebbing foreign selling has certainly helped to calm market conditions further and if this continues, the bargain hunting activities could enable the FBM KLCI to end the week on a firmer note.
Gains in the past few sessions have also allowed the market’s undertone to strengthen and should encourage further near-term upsides as the key index looks to recover further from its steep YTD (year-to-date) losses.
As it is, the selling is seen to be overdone with valuations having become attractive which should give more room for further gains.
However, the upsides could be more modest with the key index looking to consolidate some of yesterday’s gains.
Also, concerns over the on-going headwinds may also prompt some quick profit taking activities. On the upside, the hurdles are at 1,540 points, followed by the 1,545 level. The supports, on the other hand, are at 1,527 points and 1,520 points respectively.
Malacca Securities Research
Despite the US ended in the red, we expect window dressing activities to support the market on the local front.
We also maintain our positive stance on the oil & gas (O&G) sector driven by the US’ maximum pressure campaign on Iran’s oil industry which could further support Brent crude prices.
Meanwhile, traders may focus on Westports Holdings Bhd as we believe its DRP (dividend reinvestment plan)-funded capital expenditure should drive growth over the mid to long-term despite the delay in port tariffs.
Lastly, we deemed Lim Seong Hai Capital Bhd as undervalued given its revenue growth prospects, supported by a strong order book cover ratio of more than 3x.
The key index charged towards MA-20 while technical indicators showing a positive mood at the current juncture; MACD histogram expanded positively while the RSI is approaching 50.
Resistance is anticipated around 1,550-1,555 while support is set at 1,515-1,520. – March 28, 2025
