BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities rebounded as bargain hunting returned, particularly on plantation stocks that helped the key index to climb back above the 1,580 level.
This allowed the market to cast aside the ongoing concerns over the Russia-Ukraine conflict to be in tandem with the rebound in many Asian equities.
The lower liners and broader market shares also mounted a strong comeback with bargain hunting permeated to these stocks and allowing for market breadth to turn positive again.
Although the key index mounted a rebound yesterday, market conditions are still largely uncertain due to the ongoing geopolitical troubles that will continue to undermine investor sentiments and may keep many on the sidelines.
This could again prompt quick profit taking on some of yesterday’s big movers but their retreat may be cushioned by continuing interest in plantation stocks due to the prevailing record palm oil prices.
Therefore, the key index should be able to hold on to the 1,580 level, supported by the continuing bouts of buying support, particularly from foreign institutions.
In the interim, there is support at the 1,582 level while the resistances are at 1,590 and 1,600 points respectively.
Malacca Securities Research
The FBM KLCI notched higher amid the mixed regional markets, mainly propelled by the banking and plantation heavyweights.
We believe the commodity-related sectors will remain buoyant with the firm crude palm oil (CPO) and crude oil which are trading around RM6,054/metric tonne and US$96.84/barrel respectively.
On the technology sector, the rebound could be shortlived tracking another sell-down in Nasdaq overnight.
Aside from that, gold price continues to charge higher, trading above US$1,900/ounce on the back of the unsettled geopolitical tensions between Russia and Ukraine.
The FBM KLCI snapped the three-session losing streak and finished above the previous support level at 1,580.
Technical indicators are mixed as the MACD fell below the zero level while the RSI hovered above the 50 level. Resistance is set at 1,600-1,620 while the support is envisaged at 1,570-1,580. – Feb 24, 2022
