BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was a mixed session on Bursa Malaysia last Friday with index-linked stocks losing ground while the lower liners and broader market shares were mostly higher.
There were profit taking on some of the index-linked stocks with utilities and plantation stocks emerging as the biggest losers.
Market breadth, however, was positive on sustained bargain hunting on broader market shares. As a result, traded volume continues to improve as more market players return from their Lunar New Year break.
Looking ahead, the key index could be attempting to find more stability at the start of week with more players return to the market.
This could help to shore-up interest on some index-linked stocks and allow the key index to keep its position above the 1,520 level.
There are, however, still bouts of hesitation as noteworthy leads are still far and in-between which could keep the upsides modest with bargain hunting still light as market players continue to search for new catalysts.
Consequently, the FBM KLCI may find the 1,528-1,532 range as a formidable level to clear over the near term with the ensuing resistance at 1,540 points.
The supports, meanwhile, are at 1,520 points and 1,515 points respectively.
Malacca Securities Research
The FBM KLCI faltered on Friday after an overnight plunge on Wall Street spooked investors, underperforming the regional markets that were broadly positive.
Wall Street staged a rebound overnight as the better-than-expected January jobs report propelled shares on the broader market.
Nevertheless, the local bourse could remain volatile with the daily COVID-19 cases breaching the 10,000 mark on Sunday (Feb 6) under the Omicron wave.
On the commodities market, crude oil price rallied towards the US$93/barrel mark while crude palm oil (CPO) price hovered above RM5,600/metric tonne, both showing no sign of slowing down.
The FBM KLCI took a breather after staging a minor rebound in the previous session; the key index closed around its daily EMA-9 level. Technical indicators turned slightly positive as the MACD is flattening around the zero level while the RSI is pointing towards 50.
Resistance is set at 1,530 while the support is located around 1,505. – Feb 7, 2022
