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 re-tested the 1,600 level yesterday albeit it closed below the level as market players returned to take up some fresh position in Malaysian equities.
The technology index was again the biggest mover as it continues to make headway in tandem with similar gains in key global technology names.
Conditions were also positive in the broader market and among lower liners, resulting in gainers beating losers on more than a 2-to-1 ratio. Traded volumes picked up to around 3.5 billion shares.
Despite yesterday’s gains, conditions on Bursa Malaysia are still fluid and the near-term outlook will be largely dictated by overseas events for the time being.
This could also mean that key index stocks may retrace over the near term in line with weakness in key global indices overnight with the re-emergence of inflationary concerns as crude oil and other commodity prices remain elevated due to the on-going geopolitical conflict in Eastern Europe that shows little signs of abating.
Still, the retreat could be mild as the selling pressure is still light and any profit taking should be easily absorbed.
On the downside, the supports are at 1,594 points and 1,590 points respectively while the psychological 1,600 level is the immediate hurdle, followed by the 1,607 level.
Malacca Securities Research
The FBM KLCI swung higher as returned buying interest was noticed in banking and plantation heavyweights in the anticipation of the re-opening of borders and firmer crude palm oil futures (FCPO) price.
With the Wall Street taking a pause after a recent strong rebound, we expect profit taking activities may spill over to the local front, especially among technology stocks.
We think investors may stay cautious in anticipation of further sanctions against Russia which may further lift commodity prices.
Crude oil jumped above the US$121/barrel mark as disruptions to the crude export via the Caspian pipeline fuelled worries over tighter global supplies. Meanwhile, CPO is traded above RM6,300/metric tonne.
The FBM KLCI saw a rebound after two declining session as the key index holding firmly above the daily EMA9 level. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Sustained buying interest may push the key index towards resistance around the 1,600-1,620 zone. Meanwhile, support is set at 1,550. – March 24, 2022
