BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Late buying in what was seen as mild window dressing lifted the key index to end the quarter on a positive note after it lingered in the negative territory for most of the day.
This also allowed the FBM KLCI to post mild gains for 1Q 2022. However, buying interest was still relatively tepid with less than 3 billion shares transacted as there were few catalysts albeit gainers continue to outpace losers as lower liners and broader market shares also saw mild window dressing.
We see the key index continuing to drift over the near term as leads are still far and in-between.
The overnight weakness among key global equities could further leave market conditions guarded at the start of the new quarter.
This may see the key index remaining mostly sideways due to the still insipid conditions where concerns over inflation, the Russia/Ukraine war and their corresponding impact on economic and earnings growth lingers in the background.
As such, the FBM KLCI may trend within the 1,580 and the 1,600 levels for the time being. There is a minor support at the 1,585 level while the interim resistance is at the 1,590 level.
Malacca Securities Research
The FBM KLCI outperformed its regional peers on the back of improving sentiment prior to the re-opening of travel borders and this positive sentiment should remain at least for today.
However, uncertainties remained on the global front as Russia threatened to halt gas contracts supply and the tension between Ukraine and Russia still persisted.
On the commodity markets, crude oil prices retraced after US President Biden decided to carry out oil release from the nation’s petroleum reserve while crude palm oil (CPO) price trended lower, hovering around RM5,700/metric tonne.
The FBM KLCI notched marginally higher following a three-day consolidation and closed above the EMA20. Technical indicators are mixed with the Histogram extending a negative bar while the RSI is hovering above the 50 level.
Resistance is envisaged at 1,600-1,620 while the support is set at 1,550-1,560. – April 1, 2022
