BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the key index closed nearly unchanged yesterday (April 14) after surrendering its intraday gains and ending with minute losses.
Market conditions were still largely insipid that resulted in selling picking up pace in the afternoon session. The directionless trading also extended to lower liners and broader market as they also failed to gather headway.
Consequently, gainers and losers were nearly equal for the day with traded volumes continuing to taper as well.
There is no change to our immediate view with the market likely to remain indifferent as market players are still scouring for more catalysts.
However, concerns over inflation and the Russia-Ukraine conflict are likely to be placed on the backburner for the time being as they have not escalated.
Nevertheless, fresh buying could be largely absent with many market players still adopting a wait-and-see stance in view of the dearth of new leads.
As such, the key index is set to drift further with profit taking looking to continue in the near term that could result in the key index staying below the psychological 1,600 level to end the week.
The supports remain at the 1,587-1,590 levels followed by the 1,580 level. Apart from the 1,600 hurdle, the other resistance is at 1,605 points.
Malacca Securities Research
The FBM KLCI slipped into the negative territory on the back of final hour sell down in the absence of fresh catalysts.
Given the foreign funds offloaded some of the equities earlier this week, we expect the local bourse to trade in a negative-biased tone for today.
Furthermore, the negative performance on Wall Street overnight could expedite profit taking activities on the local front.
However, that the crude oil price traded above the US$110/barrel mark and the crude palm oil futures (FCPO) priced above RM6,200/metric tonne will bring optimism to plantation and energy stocks.
Also, we believe the market could be pricing in earlier than expected GE15 (15th General Elections), hence trading interest should continue to build up within the construction sector.
The FBM KLCI reversed earlier gains in the final trading hour, closing around the SMA20 level. Technical indicators remained mixed as the MACD Histogram continue to trend lower while the RSI hovered above 50.
Resistance is set at 1,600-1,620 while the support is envisaged around 1,580. – April 15, 2022
