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 ended the day with minute losses as there was a lack of direction among index heavyweights even as regional indices continue to tip higher.
Gains in plantation stocks due to the rebound in palm prices cushioned the selling pressure on banking entities.
In the broader market, conditions were mostly positive with many lower liners continuing to stage a recovery to help market breath stay positive.
Market interest also rose with volumes climbing back above the 3 billion mark.
Market conditions are becoming relatively indifferent as there are fewer compelling buying impetuses. As a result, a directionless trading pattern has also emerged that is leaving many market players to take to the sidelines.
Even so, the market’s undertone remains firm, hence allowing the key index to hold steady for the time being with mild upsides also in the offing on bouts of bargain hunting actions that would help shore-up the market.
This should also keep the key index above the 1,580 level for now with the FBM KLCI may even tip higher to the 1,590 level amid continuing mild buying interest.
Still, the 1,600 level appears to be a formidable hurdle to breach for now as the buying interest has yet to pick up substantially. Below the 1,580 support, the other support is at the 1,577 level.
Malacca Securities Research
The FBM KLCI slide marginally but we expect the downside move to be well-supported by the plantation and energy stocks.
Also, following the overnight gains on Wall Street, we opine that market sentiment will remain positive on the local front as investors are brushing off concerns over the Federal Reserve’s monetary policies and Russia-Ukraine conflicts while focusing on economic growth at least for the near term.
Moreover, the declining trend noticed in new COVID-19 cases may bode for the recovery theme.
Commodities-wise, crude oil is trading around the US$115/barrel mar while crude palm oil (CPO) hovers around RM6,000/metric tonne.
The FBM KLCI stayed above the daily EMA9 level after booking marginal losses for the second straight session. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
The next resistance is envisaged around 1,600-1,620 while the support is set at 1,550. – March 23, 2022
