BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bargain hunting in the afternoon session pushed Malaysian equities higher to help break the FBM KLCI’s streak of losses and to reclaim the 1,550 psychological level.
Banking, plantation and telco stocks led the key index higher while in the broader market, the beaten down technology stocks saw a revival to lead gainers.
Many other lower liners also saw a rebound with gainers outpacing losers nearly on a 3-to-1 ratio. However, the market’s rebound was on relatively moderate trading volumes.
After yesterday’s rebound, coupled with the strong overnight gains on major global equity indices, there should be more near-term upsides on Bursa Malaysia.
Bargain hunting is likely to be sustained on stocks that were beaten down recently and this will help to provide the impetus for the FBM KLCI to head higher.
On-going concerns over the Russia-Ukraine war will also be cast aside as market players look to pick-up some of the oversold stocks, hence could lift the key index to re-test the next hurdles at 1,566 points.
If the level is taken out, the key index could eye the next resistance at 1,570 points. The supports, meanwhile, are at the 1545-1,550 levels followed by the most recent low at 1,540 points.
Malacca Securities Research
The FBM KLCI outperformed the mixed regional bourses despite the overnight negative performances on Wall Street as bargain hunting activities took place.
With the rebound in Wall Street overnight amid easing tension between Ukraine and Russia, we reckon gains on the local bourse could be extended in most of the sectors that were being bashed down over the past month.
On the commodity markets, crude oil cooled down after the positive progress between Ukraine and Russia with OPEC willing to raise output, while crude palm oil (CPO) price may stay elevated on further restrictions of export in Indonesia that may lead to tighter supply in the global markets.
The FBM KLCI closed above the daily EMA60 level and the previous support at 1,550. Technical indicators are still mixed with the MACD Histogram still below zero while RSI is improving towards 50.
The resistance is located at 1,570-1,580 while the support is pegged at 1,550, followed by 1,520. – March 10, 2022
