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 remained on the ascend despite a choppier market environment with continuing support on some of the index heavyweights in the plantation and banking segments.
This allowed the key index to end the day above the 1,600 level – the first time since October last year. However, many of the lower liners and broader market shares saw profit taking while the mixed performance saw losers and gainers in an equal footing.
Volumes, meanwhile, were slightly lower for the day.
With the market conditions remaining toppish, the near-term outlook is likely to stay mixed as the key index attempts to fortify its position above the psychological 1,600 level.
There will still be bouts of buying, riding on the country’s improvement economic outlook and easing geopolitical concerns but the upsides could also be punctuated by profit taking activities following the key index’s recent strong gains.
As such, further upsides could be more difficult to come by with the key index instead hovering close to the 1,600 level for the time being.
On the upside, the resistances are at 1,606 and 1,616 levels respectively while the immediate support below the 1,600 level is at 1,591 points.
Malacca Securities Research
Although there were signs of quick profit taking activities, the FBM KLCI managed to hold onto its intraday gains as the key index surpassed the 1,600 psychological level.
While the FBM KLCI is overbought, we think that further upsides are still on the table as buying momentum may persist over the well-contained volatility on Wall Street overnight and the sustained buying interests from foreign funds that recorded their eighth straight session of inflow yesterday.
The lower liners are expected to remain supported by the on-going batch of corporate earnings that may provide some pockets of trading opportunities over the near term.
The FBM KLCI remained upbeat as the key index advanced to close above the 1,600 resistance level. Technical indicators remained positive as the MACD remained above the zero level while the RSI hovered in the overbought position.
The next resistances are located at the 1,620-1,640 while support is now set around 1,570, followed by 1,540. – Feb 17, 2022
