BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was yet another dour day on Bursa Malaysia as stocks continue to consolidate with the selling/profit taking spree becoming more pronounced as losing stocks overwhelmed gainers by a wide margin yesterday.
Market sentiments took a hit with concerns over potentially tighter monetary and fiscal measures ahead causing consternation among local market players.
Glove maker stocks remain among the big losers for the day due to their potentially weaker prospects ahead with the vaccine availability.
Following the FBM KLCI’s incessant falls, the near-term outlook remains insipid and there appears to be more downside bias on the horizon.
Recent attempts to break the downward spell has been met by renewed selling, particularly by foreign players that has kept the key index firmly in red.
While there is little to suggest this trend could change, we think that a rebound is already due following the recent weakness that has left the FBM KLCI oversold.
As it is, the key index is nearing the psychological 1,550 level which should provide firmer support and could also allow it to break its downward spell.
Nevertheless, the market’s rejuvenation is still uncertain at this juncture given that the Employees’ Provident Fund (EPF) could still be looking to trim some of the shareholding to meet its i-Sinar payouts over the near-to-medium term.
Below 1,550, the other support is at 1,540, while the hurdles are pegged at the 1,570-1,580 levels.
Malacca Securities Research
Selling pressure in the glove counters persisted, pushing the FBM KLCI into the negative territory in the afternoon trading session.
While the National COVID-19 Immunisation Programme kick-off did not boost the local bourse yesterday, we expect some bargain hunting activities to arise in lower liners after close to 1,000 counters closed in the red.
Meanwhile, the Brent oil price continues to climb above US$67.
The FBM KLCI declined for the third session to close below the 1,560 level. Technical indicators remained negative as the MACD Histogram has extended another red bar, while the RSI was hovering below 50.
The key index should continue to range-bound with support pegged at 1,550, and resistance level is set around 1,590-1,600. – Feb 25, 2021
