BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was a positive start to the new quarter as fresh buying interest emerged, particularly from foreign funds, to push the key index past the 1,600 level.
The buying focused on laggards in the healthcare and energy segments and the gains were also in tune with the upsides among its ASEAN peers.
The broader market and lower liners also saw gains, helping gaining stocks to remain ahead of losing stocks. The improved buying interest also saw traded volumes jump back above 3.0 billion units.
Although the key index tipped higher last Friday, it remains to be seen if there will be sufficient follow-through buying interest to preserve the upward streak.
As it is, last Friday’s gains could just be a portfolio realignment exercise for the new quarter with market players cheering the country’s border re-opening that could bolster the prospects of tourism and consumer-related sectors in the quarters ahead.
Therefore, the market’s near-term outlook remains fluid for the time being, hence the overall conditions could still be volatile.
Nevertheless, the key index should be able to hold steady as selling pressure is relatively benign that will allow for the key index to stay above the 1,590 support over the near term.
It would also attempt to hover close to the 1,600 level for the time being with the hurdles pegged at 1,606 and the 1,618 levels. There is an interim support at 1,597 points.
Malacca Securities Research
The FBM KLCI surpassed the 1,600 mark on Friday as investors cheered the progress towards endemic on the first day of border reopening.
We opine that with the re-opening of international border coupled with the declining daily COVID-19, confirmed cases will continue to bode well for the recovery of business activities.
On the commodities market, crude oil price settled lower below the US$110/barrel mark after a truce in Middle East conflict eased potential supply concern and members of the International Energy Agency (IEA) agreed to join the US oil reserves release. Meanwhile, crude palm oil (CPO) price hovered around RM5,500/metric tonne zone.
The FBM KLCI extended gains and soared above the daily EMA9 and the 1,600 psychological level. Technical indicators remained mixed as the Histogram has extended a negative bar, while the RSI hovered above the 50 level.
Next resistance is now pegged at 1,620 while the support is located at 1,580. – April 4, 2022
