BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI recovered on Friday to end to the week on a positive note, buoyed by a rebound in banking, utilities and healthcare stocks.
This enabled the key index to stay comfortably above the 1,600 level and allowed total market gainers to outpace losers. Many lower liners and broader market shares also turned in a winning day amid the continuing trading activities.
However, the day’s traded volumes slipped below the 3.0 billion level.
The mildly positive near-term outlook seems to continue as market condition appears more stable heading into the start of the week.
Although geopolitical concerns still lingers, the Russian/Ukraine conflict has not escalated and this should provide more reprieve to market’s sentiments.
The relatively calmness should also provide further market impetus and allow the key index to extend its gains albeit there may be some mild bouts of profit taking from last week’s gains that could temper the upsides.
Therefore, the 1,600 level is likely to continue holding with the key index to possibly make a pass at the 1,608-1,610 levels. Thereafter, the next target is the recent high at 1,618 points. Below the 1,600 level, the support is at 1,595 points.
Malacca Securities Research
The FBM KLCI wrapped up the week above the key 1,600 level, building up a positive sentiment on the local bourse as Malaysia could be viewed as a defensive market under this uncertain environment.
In view of the mixed performances on Wall Street overnight, we believe investors should favour stocks under the recovery-theme while avoiding the technology sector.
Meanwhile, several economic releases for this week include the US inflation rate and the European Central Bank interest rate decision which will be released on April 12 and 14 respectively.
On the commodity markets, crude oil hovered above US$100/barrel while crude palm oil (CPO) was traded firmer above RM5,900/metric tonne.
The FBM KLCI saw a rebound as the key 1,600 level was being well-defended. Technical indicators were positive as the Histogram is above the zero line while the RSI hovered above 50.
Resistance is set at 1,620 while the support is envisaged around 1,555-1,580. – April 11, 2022
