BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities remain on the ascend to end the week on a positive note and above the 1,600 psychological level, albeit intraday conditions were choppier due to few available leads.
However, late buying on selected index leaders allowed the FBM KLCI to close at its highest level for the day. The broader market shares and lower liners were also mostly higher with technology names the biggest movers.
Although market breadth remained positive, traded volumes were still on the low side.
With the key index able to clear the 1,600 level last week, the benchmark index could now be attempting to stay above the level with the mild buying continuing to provide support.
Market conditions should stay relatively calm over the near-term but a definitive direction has yet to be determined amid the lack of new leads with the continuing geopolitical concerns in Eastern Europe and rising cost still dominating sentiments.
As such, further gains may remain modest for the time being with the key index’s next target set at the 1,606-1,610 levels. Thereafter, the next hurdle is at the 1,616 level while the 1,600 level is the immediate support, followed by the 1,595 level.
Malacca Securities Research
The FBM KLCI finished higher for the second week as investors brushed off some concerns over the Russia-Ukraine conflict while looking forward to the re-opening of border on April 1 (Friday).
We expect the recovery-themed sector to remain resilient prior to this event. Meanwhile, commodity prices are likely to remain volatile on the back of unresolved conflict between Russia-Ukraine and the COVID-19 related restriction in China where Shanghai will be on a lockdown mode in few stages for 9 days.
Crude oil price traded above US$120/barrel mark while crude palm oil (CPO) price hovered above RM6,000/metric tonne.
The FBM KLCI rose for the third session as the key index surpassed the key 1,600 level. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Next resistance is located around 1,620 while the support is pegged around 1,580. – March 28, 2022
