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 re-tested the 1,600 level yesterday albeit closing below the level as market players returned to take up some fresh position in Malaysian equities.
The technology index was again the biggest mover as it continues to make headway in tandem with similar gains in key global technology names.
Conditions were also positive in the broader market and among lower liners, resulting in gainers beating losers on more than a 2-to-1 ratio. Traded volumes also picked up to around 3.5 billion shares.
Despite yesterday’s gains, conditions on Bursa Malaysia are still fluid with the near-term outlook to be largely dictated by overseas events for the time being.
This could also mean that key index stocks may retrace over the near term in line with weakness in key global indices overnight amid re-emergence of inflationary concerns as crude oil and other commodity prices remain elevated due to on-going geopolitical conflict in Eastern Europe that shows little signs of abating.
Still, the retreat could be mild as selling pressure is still light and that any profit taking should be easily absorbed.
On the downside, the supports are at 1,594 points and 1,590 points respectively while the psychological 1,600 level is the immediate hurdle, followed by the 1,607 level.
Malacca Securities Research
Market sentiment continued to stay positive as buying interest in banking, gaming and aoil & gas (O&G) heavyweights lifted the FBM KLCI marginally higher.
We believe the re-opening of travel borders in April should revive the economic sectors in Malaysia and benefit the recovery-themed stocks.
Nevertheless, sentiment may remain cautious amid the unresolved geopolitical tensions between Russia and Ukraine.
On the commodity markets, crude oil price saw a slight pullback, trading around the US$118/barrel mark as the US and its allies discussed a possible further release of oil while crude palm oil (CPO) traded around RM5,900/metric tonne.
The FBM KLCI saw another win after recouping most of its intraday losses in the final hour. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
The key index was pushed closer to the 1,600-1,620 resistance level with support pegged at 1,550. – March 25, 2022
