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 further ground at the end of last week in tune with the weakness of regional indices.
Selling became more pronounced, especially among plantation stocks with Sime Darby Plantation Bhd emerging as a top loser.
At the same time, total losers continue to dominate gainers as many of the lower liners and broader market shares also succumb to the selling pressure.
Market participation was also significantly lower as market players were left on the sidelines.
There continues to be a lack of catalysts to lift market interest with the wait-and-see stance set to continue at the start of the week.
With the key index continuing to slip below critical technical support levels, the downside bias also looks to continue that could see it endure further near term selling.
Sentiments are likely to remain guarded as market players are awaiting for more clarity in the market’s direction that is still devoid of significantly positive developments.
This also means that the key index may re-test the 1,580 level albeit there is an interim support at around the 1,585 level. On the upside, the hurdles are at the 1,595 and 1,600 levels respectively.
Malacca Securities Research
The FBM KLCI ended the week on a negative note in a subdued market environment in line with the regional downtrend move.
While external risks remained in place, the border reopening should continue to bode well for the local economy, especially the aviation and consumer sectors.
Meanwhile, investors should monitor China’s key economic data which will be released today and Malaysia’s inflation rate later this week to gauge Bank Negara Malaysia’s (BNM) interest rate directions moving forward.
On the commodity markets, crude oil traded above the US$110/barrel mark while crude palm oil (CPO) price was well supported above RM6,300/metric tonne.
The FBM KLCI extended losses, falling below the daily EMA20 level amid lacklustre trading. Technical indicators turned negative as the Histogram fell below the zero line while the RSI crossed below 50.
Resistance is set at 1,600-1,620 while the support is envisaged around 1,580. – April 18, 2022
