BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index lost ground again to end last Friday on a downbeat note. Profit taking activities were prevalent ahead of the weekend that was also more pronounced-than-expected, particularly among plantation stocks due to the weaker palm oil prices.
In the broader market, conditions were mixed with many of the lower liners making mild headway that also saw gainers and losers on an even keel.
However, traded volumes continue to retreat amid the still cautious market undertone.
The market’s near-term outlook is still unsettled and the choppy conditions look to continue at the start of the week.
Much of the market’s direction will be dictated by the performance of commodity prices as there is still no resolve in the Russia-Ukraine war.
At the same time, there could also be cautiousness ahead of the Federal Reserve’s meeting in the middle of the week that could likely see a lift in interest rates – the first time since the pandemic begun.
Consequently, the downside bias remains which could see the FBM KLCI remaining weak again with buying interest remaining thin.
On the downside, there are supports at the 1,560 and 1,550 levels while the hurdles are at 1,575 and 1,580 points respectively.
Malacca Securities Research
The FBM KLCI retreated amid the mixed regional market as the sentiment remained negative tracking the performance on Wall Street overnight.
Moving forward, we expect the market to consolidate over the near term given the (i) unresolved Russia-Ukraine tension; and (ii) monetary policy decision from the US Federal Reserve this week will be watched closely.
A less hawkish stance by the Fed in the upcoming meeting may push the market higher going forward.
Commodities-wise, crude oil hovered around US$110/barrel while crude palm oil (CPO) staged a pull-back after recent rallies, hovering around RM6,700/metric tonne.
The FBM KLCI retraced after two sessions of rebound and the key index is below the daily EMA20 level. Technical indicator is weak as the MACD Histogram still below zero while RSI is below 50.
Resistance is pegged around 1,570-1,580 while the support is located at 1,550 followed by 1,540. – March 14, 2022
