BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities rebounded on Wednesday (Jan 27) with the key index tipping up on renewed bargain hunting activities on selected banking and semiconductor stocks.
This helped to break the key index’s downward spell that has extended since the start of the year.
The rebound among the lower liners and broader market shares were even stronger with technology-related stocks jumping on optimism of sustained demand, helping market breadth to stay positive, despite the still relatively thin volumes.
Malaysian stocks could be looking to build on the rebound to possibly end the week on a more positive note despite the overall market environment is still one of cautiousness.
Among heavyweights, there is still tentativeness on the lack of leads, but after the recent market falls, coupled with the more compelling valuations, the key index could be looking to build-up a base that could help it arrest the recent downtrend that has seen it consolidate some 100 points since mid-December 2020 which is already overdone.
For now, we think the key index could be attempting to build up a base around the 1,580-1,600 points.
Further above, the resistances are at the 1,615-1,620 levels, while the supports are pegged at 1,575 and 1,565 respectively.
Malacca Securities Research
The FBM KLCI outperformed its regional peers to end mildly higher on Wednesday (Jan 27) following an announcement by the Health Ministry on the supply of 18.4 mil doses COVID-19 vaccines by Pharmaniaga Bhd and Duopharma Biotech Bhd in March 2021.
Given the rebound on Wall Street overnight, coupled with the relaxation of movement control order (MCO 2.0) to allow all businesses to operate until 10pm, may contribute to some positive impact to the market, albeit rising COVID-19 cases may still dampen the economic recovery.
Meanwhile, the lower liners are seeing some rebound signs.
Following the modest gain on Wednesday, the FBM KLCI seems to have found some stability above the EMA120 level.
However, indicators turned mixed as the MACD Histogram has turned into a green bar, while the RSI remains below 50.
The resistance will be envisaged at 1,600-1,610, while the support will be set along 1,550-1,560. – Jan 29, 2021
