BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Selling continued to dominate trading yesterday as the FBM KLCI retreated for a second straight day, bucking the region’s mostly upward trend as there were few buying impetuses.
The retreat was also broad-based with losers well ahead of gaining stocks after many lower liners and broader market shares also lost ground.
Among heavyweights, banking stocks were the biggest loser for the day with technology names also retreating further. Traded volumes were little changed from a day earlier.
Although the 1,580-support level has held up in the wake of the increased selling yesterday, the market’s condition remain largely fluid as domestic leads are still far-and-in between.
As a result, buying interest may still be on the low side and this may keep market interest subdued for the time being.
Notwithstanding the still insipid market interest, selling should ease as the key index attempts to fortify its position above the 1,580 level after the recent sell-down.
Its efforts will be helped by the easing geopolitical concerns in Eastern Europe and the improved sentiments could lead to redux of bargain hunting to provide support to the key index.
This should help the key index to find some solace and may even help it to tip higher to the 1,588-1,590 levels. Below the 1,580 support, the other support is at the 1,577 level.
Malacca Securities Research
Without significant fresh catalysts, the local market traded lower with 12 out of 13 sub-indices joining the FBM KLCI in the negative territories.
Nevertheless, we opine that buying interest may return, taking cues from the overnight Wall Street performance as investors cheered the positive developments from the peace talks between Russia and Ukraine.
We expect a broad based recovery in our local exchange. On the commodity front, Brent crude oil traded lower around the US$110/ barrel mark while crude palm oil (CPO) price hovered around RM6,000/metric tonne.
The FBM KLCI extended its pullback move as the key index closed below the daily EMA9 and EMA20 level. Technical indicators, however, remained positive as the MACD Histogram has extended a positive bar while the RSI hovered above 50.
The resistance is located at 1,600 while the support is pegged around 1,550-1,560. – march 30, 2022
