BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities returned to the positive side yesterday following its streak of losses that prompted fresh bargain hunting activities, particularly on plantation, energy and banking stocks that were the big losers earlier.
The positivity also spread to the lower liners and broader market shares as they, too, benefitted from renewed trading actions.
Collectively, this allowed market breadth to turn positive while traded volumes climbed back above the 3 billion shares mark for the day.
After breaking its downward streak yesterday, the key index could be looking to extend its near-term upsides as it aims to regain further traction, riding on the improved global market sentiments.
There could be rotational plays on heavyweight laggards as they continue to play catch up and this should help to preserve the FBM KLCI’s gains for the time being.
The gains could also permit the key index to re-test the 1,600 level albeit a convincing breach of the level may still be difficult as the upsides may prompt quick profit taking actions instead.
As such, it looks to remain a formidable level to clear over the near term. In the interim, there is a resistance at the 1,596 level while the supports are pegged at 1,590 and 1,580 points respectively.
Malacca Securities Research
Renewed buying interest in most of index heavyweights led by banking stocks to push the FBM KLCI higher following the positive overnight performance on Wall Street.
However, we believe that technology stocks are likely to give back their recent gains on the back of a weaker Nasdaq performance.
Nevertheless, traders could monitor few other catalysts like (i) the re-opening of travel borders theme; (ii) elevated commodity prices; and (iii) recovering construction activities for trading purposes.
On the commodity markets, crude oil price hovered above the US$105/barrel mark while crude palm oil futures (FCPO) remain supported above RM6,300/metric tonne.
The FBM KLCI snapped its three-day losing streak and bounced back above the SMA50 level as the key index remained supported above 1,580. Technical indicators were mixed as the MACD Histogram remained below zero while the RSI crossed above the 50 level.
Resistance is pegged around 1,600-1,620 while the support is set at 1,580. – April 21, 2022
