BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, Malaysian stocks pulled-back yesterday in tandem with the steep overnight losses on Wall Street that prompted quick profit taking actions on some of the recent gainers.
The selling spree was widespread with losing stocks more than double the gaining ones with many lower liners and broader market shares also retreating on the lack of positive leads.
Nevertheless, the selling was on relatively thin volumes as many market players opted to remain on the sidelines.
Malaysian equities are likely to stay directionless in the near term as there are still few compelling leads for market players to follow.
This could leave the key index to meander for longer albeit it could still be attempting to find support after yesterday’s selling has left it around the 1,585 level.
The calmer Wall Street performance could give some leeway for the market to halt its downtrend, but the supports are likely to be mild ahead of the long break next week with thinning market participation.
Consequently, the FBM KLCI may linger around the 1,580 and 1,590 levels for the day ahead. Beyond these levels, the other support and resistance levels are at 1,578 and 1,595 points respectively.
Malacca Securities Research
The FBM KCLI extended its sideways consolidation phase below the 1,600 level on the back of industrial products heavyweights-led sell-down following the overnight selling activities on Wall Street.
While global uncertainties may still loom, the recovery-themed sector on the local bourse may gain traction as further relaxation of COVID-19 standard operating procedures (SOPs) effective May 1 could signal a greater extent of economic recovery.
On the commodities market, crude palm oil futures (FCPO) surged above RM6,900/metric tonne following Indonesia’s decision to widen the scope of its export ban to include CPO. Meanwhile, Brent crude price remained supported above US$100/barrel.
The FBM KLCI retreated and skidded below the SMA50 level as the key index is still struggling to find direction. Technical indicators remained neutral as the Histogram was still swaying around the zero-line while the RSI hovered below 50.
The 1,570-1,580 range is the immediate support to watch while 1,600 and 1,620 will act as resistance points. – April 28, 2022
