BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities staged a credible rebound yesterday in tune with gains in key global indices a day earlier.
Bargain hunting was prevalent among index-linked stocks with foreign institutions remaining net buyers to offset the selling from local investors.
Market breadth also turned positive as many lower liners and broader market shares made headway, particularly technology stocks. Although total trades for the day improved, it was still on the low side with only 2.5 billion shares changing hands.
There should be sustained gains in the last trading day before the extended holiday break next week. Bursa Malaysia stocks are likely to mirror the performance of Wall Street which posted a strong comeback overnight.
The upsides may even lift the key index to the 1,600 level to end the week on a high albeit there could also be some early bouts of choppiness from quick profit taking activities.
Nevertheless, the positivity will persist for now. While the FBM KLCI may retest the 1,600 level, it may not be able to pass the significant hurdle around the 1,610 level as the buying interest is still largely tepid.
In the interim, there is a resistance at 1,607 points while the supports are at 1,595 and the 1,590 levels respectively.
Malacca Securities Research
The FBM KLCI bounced back towards the key 1,600 level in tandem with the positive regional markets on the back of bargain hunting activities.
On Wall Street, investors piled into the technology stocks following solid earnings from major technology stocks, shrugging off concerns over interest rate hikes and weaker 1Q 2022 US GDP (gross domestic product) data.
We expect the bargain hunting activities in the US to spill over to local technology stocks. Also, we expect digital banking license to be announced in the near term.
Commodities-wise, the crude palm oil futures (FCPO) remained above RM6,900/metric tonne while Brent crude is now above US$105/barrel mark.
The FBM KLCI closed above its daily EMA9, signalling an improving momentum albeit the key index still below 1,600. Technical indicators were mixed with the Histogram still hovering around the zero-line while the RSI climbed above the neutral 50.
Resistance is pegged at 1,600-1,620 while the support is located at 1,580, followed by 1,570. — April 29, 2022
