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 lost ground again yesterday, to again slip below 1,600 points where follow-through interest from the previous day’s upsides were largely absent.
Technology stocks were among the big losers, in tune with the pullback in global technology stocks while bellwether plantation stocks also succumbed to selling pressure due to the lower palm oil prices.
The broader market was mixed with overall traded volumes continuing to thin with the lack of new leads.
We see the Malaysian equity market’s rangebound trend continuing over the near term as market interest is still thinning. The lack of investor interest is telling as it would also leave overall sentiments indifferent for longer as market players will continue to re-assess its direction in an environment where positive leads are already far and
in-between.
As such, we think that large market moves will likely be absent ahead of the weekend and the lack of interest could also see the downside bias persisting for the time being with the key index set to linger within a tight range between the 1,590 and 1,610 levels for now.
Beyond these levels, the other support and resistance levels re at 1,580 and 1,620 levels respectively.
In the same vein, the lower liners and broader market shares are also likely to remain rangebound for the most part with the downside bias also still prevalent due to the thinner market interest.
At the same time, there are also fewer buying opportunities due to the already toppish stock valuations, particularly on technology stocks that have risen significantly over the past year.
Malacca Securities Research
As trading volume and value has declined over the past three days, we expect the local bourse to trade in a consolidation mode as market sentiment remained cautious due to the absence of fresh catalysts amid lower oil and CPO price. Given the subdued trading interest on the market, traders will be selective in looking out for trading opportunities.
Sectors that could be focus today could be in the construction, building materials and property as Penang Transport Master Plan news surfaced in the media yesterday.
Meanwhile, recovery-theme sectors such as consumer will still be on the lookout, while technology stocks may rebound on the back of the positive overnight performance on Nasdaq. – March 26, 2021
