BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities continue to gain ground yesterday, taking cue from the positivity of key overseas indices a day earlier that allowed for the follow through buying on banking and plantation stocks to emerge.
At the same time, energy stocks also gain ground due to the higher oil prices to lift the FBM KLCI.
Market breadth remained positive but profit taking emerged on some of the lower liners and broader market shares while traded volumes also slipped back below the 3 billion shares mark.
Market hesitation may emerge heading into the weekend that could renew profit taking activities again.
With follow through buying was on low volumes yesterday, the continuing low market participation may stall the upside potential after key global indices posted an insipid performance overnight.
Consequently, the domestic market condition could turn mixed-to-lower ahead of the weekend with the market poised to consolidate once again.
This could see the key index retreating back to the 1,590-1,595 levels as selling pressure is still relatively benign. On the upside, the 1,600 level remains the immediate resistance followed by the 1,604 points level.
Malacca Securities Research
The FBM KLCI extended its rebound, mainly buoyed by gains in banking heavyweights as investors shrugged off the negative tone across regional markets and focused on the economic recovery theme following the re-opening of travel borders.
While foreign funds continue to support the local bourse, the overnight sell-down on Wall Street may impact negatively on the technology sector.
Investors may also monitor Malaysia’s inflation data which will be released later today.
Meanwhile, the Brent crude and crude palm oil futures (FCPO) are still hovering above US$105/barrel and RM6,300/metric tonne respectively.
The FBM KLCI rose for the second straight day by finishing above the daily EMA9 level. Technical indicators were mixed with the MACD Histogram remained below zero while the RSI hovered above 50.
Resistance is envisaged at 1,600 followed by 1,620, while the support is located at 1,580. – April 22, 2022
