BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bursa Malaysia ushered in the lunar New Year on a firm footing as stocks rose to its highest level in a month amid the improving sentiments for global equities that allowed for the key index to jump pass the psychological 1,600 points level.
The gains were broad-based as well with market breadth overwhelmingly positive on renewed following on the broader market shares, resulting in traded volumes surpassing the 10 billion shares mark for the first time in more than a month.
With momentum continuing to build up, coupled with the improving COVID-19 conditions globally, we see further near-term upsides for stocks on the FBM KLCI.
Concerns over the pandemic conditions are easing as the infectivity rates are falling around the world, while the vaccine availability is also helping to calm markets further.
Meanwhile, the rising oil prices is also helping to renew interest among oil and gas (O&G) stocks that would further buoy the near-term market sentiments, in our view.
As such, we also see increased market participation as more participants return to the market and this could push the key index to retest the 1,620 level in the near term.
Further ahead, the resistances are at 1,627 and 1,638 points respectively. The supports, on the other hand, are at 1,600 and 1,590 points respectively.
Malacca Securities Research
The first trading day after the Lunar New Year break saw the FBM KLCI climbing with all sectors finished in the green in line with its regional peers.
Meanwhile, oil price rose to its highest since January 2020 on the back of the Middle East tensions.
With Wall Street inching higher overnight, we opine trading interest on the local front will remain robust as vaccine rollout across more countries may drive the optimism for an economic recovery.
Likewise, the lower liners may continue its uptrend in the near term.
The FBM KLCI may continue its uptrend after closing above the psychological resistance level at 1,600 on improved global sentiment.
Indicators turned positive as the MACD Histogram has extended another green bar, while the RSI climbed above 50.
The next resistance level is found at 1,620-1,650, while the support level is pegged around 1,600, followed by 1,560. – Feb 16, 2021
