BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Strong buying interest continues to lift the FBM KLCI yesterday and allowed it to end at the 1,590 level which is also its highest level in two weeks.
Buying was brisk with banking stocks and glove makers leading the key index higher, riding on the improved market undertone that was buoyed by the uptrend in global equities.
Conditions in the broader market also improved that helped market breadth to stay positive and investor interest picking up to climb past the 3.0 billion level for the day.
With sentiments staying positive, the key index is poised for another positive session ahead and to possibly end the week on a high note.
Much of the impetus will be from the overnight gains on Wall Street that continues to see a silver lining in the global economy despite the prospects of higher interest rates.
The positive undertone should also continue to provide the catalyst for market players to nibble on some of the recent big losers and the sustained gains could allow the key index to re-test the 1,600 level albeit there could still be mild bouts of profit taking ahead of the weekend that may temper the upside potential.
As such, the 1,600 level could prove to be a significant hurdle for the key index to pass over the near-term. In between, there is a resistance at the 1,596 level while the supports are at 1,585 and 1,580 points respectively.
Malacca Securities Research
The FBM KLCI notched higher as positive sentiment spilt over from the regional market after authorities from China and the US signalled cooperation plan on US-listed Chinese stocks and fading concerns over the Russia-Ukraine conflicts lifted the overall sentiment.
We expect investors may continue the bargain hunting mode given the extended gains on Wall Street.
Nevertheless, traders should remain cautious given the geopolitical risk between Ukraine and Russia still persists.
Commodity-wise, Brent oil price is hovering above US$100/barrel mark while crude palm oil (CPO) price has declined below RM6,000/metric tonne.
The FBM KLCI surged and closed above the daily EMA9 level and the immediate resistance at 1,580. Technical indicators turned positive as the MACD Histogram located at the zero level while the RSI climbed above 50.
The next resistance is pegged around 1,600-1,620, while the support is located at 1,550. — March 18, 2022
