BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities were broadly higher yesterday despite the key index paring most of its intraday gains to close just a shade higher.
Glove stocks still saw profit taking but the technology index maintained its recovery for a second day to emerge as big movers.
Many lower liners and broader market shares also tipped higher on sustained bargain hunting, resulting in gainers maintaining their advantage over losing stocks.
Traded volumes, however, were moderate for the day.
The FBM KLCI has seemingly found some stability as the on-going market concerns have not escalated and this allows equities to find some measure of support.
The near-term outlook is also likely to remain calm, hence allowing the FBM KLCI to stay positive and to build up a base near the 1,600 level.
With few impetuses, however, the buying interest is likely to be mild, but will still help to keep the key index afloat as it attempts to climb back to the 1,600 level over the near term.
Thereafter, the hurdle is at the 1,605 level. On the downside, there are supports at the 1,587-1,590 levels followed by 1,580 points.
Malacca Securities Research
The FBM KLCI ended flat on the back of mixed sentiment across regional markets.
Sentiment however, turned positive in the US despite accelerated inflation as investors focused on the upcoming earnings season.
On the local bourse, we believe the elevated crude oil and crude palm oil (CPO) prices will continue to bode well for the energy and plantation counters, while the increasing demand for travelling following the re-opening of travel borders will support the economic recovery going forward.
Commodity-wise, both the Brent crude oil and CPO prices trended higher, hovering around US$108/barrel and RM6,100/metric tonne respectively.
The FBM KLCI closed flat and remained below the 1,600 and daily EMA9 level. Technical indicators are mixed with the Histogram mildly declining while the RSI is hovering above 50.
Resistance is envisaged around 1,600-1,620 while the support is located around 1,580. – April 14, 2022
