BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities underwent a mild retreat yesterday as profit taking emerged on some of the recent movers, particularly among the lower liners and broader market shares that were on an extended upward streak.
Still, big cap plantation stocks sustained their upsides among the index heavyweights to provide the cushioning effect to the FBM KLCI to remain above the 1,600 level.
On the whole, however, losers were ahead of gainers amid with traded volumes little changed from a day earlier.
With few new market developments, Malaysian equities are likely to stay stable and hover around the 1,600 level to end the week.
Buying impetuses are still scant which is likely to keep strong buying interest away but there will still be bouts of bargain hunting that will help to provide support.
At the same time, there is also little selling pressure and collectively, these factors will allow the FBM KLCI to remain stable and may also allow for it to make some mild gains following the positive close on key global indices overnight.
On the upside, the hurdles are at the 1,606-1,608 levels and the most recent high of 1,618 points. Below 1,600, the supports are at 1,595 points and 1,591 points respectively.
Malacca Securities Research
The FBM KLCI shed gains in tandem with regional peers after the US Federal Reserve meeting minutes put investors’ focus on the possibility of more aggressive US interest rate hikes.
Still, we expect the local bourse to trade in a consolidation mode as investors mulled over the US hawkish stance as well as the Russia sanction.
Nevertheless, we believe the downside risk may be cushioned by the recovery in business activities. Commodities-wise, both crude oil and crude palm oil (CPO) traded lower, hovering above US$100/barrel and RM5,800/metric tonne respectively.
The FBM KLCI staged a mild pullback but managed to hold above the daily EMA 9 level. Technical indicators were positive as the MACD Histogram is above the zero line while the RSI hovered above 50.
Resistance is envisaged at 1,620 while the support is set around 1,580, followed by 1,555. – April 8, 2022
