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 regained its stride yesterday amid rotational buying on selected index-linked stocks to help it climb past the 1,600 level again.
Banking and plantation stocks were among the big winners on the FBM KLCI that also allowed it to buck the region’s weakness.
Many lower liners and broader market shares also remained on the upside with gainers again overpowering losers on the firmer trading activities.
Traded volumes, however, were easier but still stayed above the 3 billion shares mark.
Malaysian equities continue to decouple from the performance of key global indices with support from foreign funds that remained comfortably as net buyers year-to-date (YTD).
This should also allow the key index to remain mostly resilient ahead and buck the ongoing volatility among key global indices.
However, it remains to be seen if the key index could stay above the 1,600-level following news that the Federal Reserve will roll back its bond buying that send most global equities lower overnight.
This could prompt quick profit taking among Bursa Malaysia stocks and leave the FBM KLCI to drift once more.
As such, the 1,600 level would serve as the immediate support but if it gives way, the next support is at 1,595 points. On the other hand, the resistances are at 1,610 and 1,618 points respectively.
Malacca Securities Research
The FBM KLCI bucked the regional downtrend as bargain hunting activities in selected plantation, energy, and banking stocks lifted the key index.
Given the negative performance on the Wall Street, we expect some profit taking activities may emerge on the local front, especially on the technology stocks.
Also, crude oil price dipped, trading around the US$101/barrel mark after members of the International Energy Agency (IEA) agreed to release oil from their emergency reserves.
For the crude palm oil (CPO) futures, the price continued to hold above RM5,900/metric tonne.
The FBM KLCI remained above the daily EMA9 level as the key index bounced back above the key 1,600 level, snapping the two-session losing streak. Technical indicators are positive with the Histogram turned positive while the RSI is hovering above the 50 level.
Resistance is now set at 1,620 while the support is pegged around 1,580, followed by 1,555. – April 7, 2022
