BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malaysian equities were broadly in the red on Monday, bucking the positive sentiment in regional stock markets.
Losers outperformed gainers on a ratio of 733-to-503 stocks as quick profit-taking prevailed.
The FBM KLCI was also in the red, despite clawing back some of its losses in the eleventh hour.
Moving forward, the absence of near-term drivers could see the continued consolidation of the key index, especially as glove-related stocks remains out of favour due to accelerated vaccine inoculation worldwide.
We maintain our near-term support and resistance levels around 1,570 and 1,580 respectively, with mild upside by taking the lead from the positive sentiment on Wall Street overnight.
Malacca Securities Research
The FBM KLCI ended the first trading session of March in red amid continued selling pressure in glove heavyweights following further developments on COVID-19 vaccine.
Although the arrival of the COVID-19 vaccine has dented the sentiment on healthcare sector, the local bourse was supported by the positive sentiment on the recovery-theme sectors.
Meanwhile, we also expect 5G and tech stocks to trade firmer following overnight Nasdaq performance.
The FBM KLCI ended below the EMA120 level with milder volume. Technical indicators have turned red as the MACD Histogram formed a red bar, while the RSI remained below 50.
We expect the key index to trade sideways with the support pegged at 1,570, and the resistance level envisaged around 1,600-1,620. – March 2, 2021