What to expect on Bursa Malaysia today

BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:

Inter-Pacific Research

Malaysian equities continue to make headway – for a third day – with market players taking further positions in selected heavyweights in rotational plays.

Glove makers were among the main movers after Top Glove Corp Bhd reported a strong set of result, while telcos saw renewed bargain hunting along with many oil & gas (O&G) stocks amid rising oil prices.

The broader market environment was also mostly positive albeit total volumes remain below the 10 billion shares mark.

With sentiments improving – on optimism over a potentially faster-than-expected economic recovery with the COVID-19 vaccination process, we see the ongoing uptrend sustaining over the near term.

At the same time, the follow-though buying is also picking up and this could further contribute to the near-term positivity.

The current market strength will also readily absorb any near-term profit taking spells and help the market to quickly cast aside any of the selling-induced weakness.

Consequently, we see the FBM KLCI now targeting the next hurdle at around the 1,632 level and a successful cross could prompt it to re-test the 1,640 level which is just shy of its intraday year high of 1,646 points.

On the downside, the supports are set at 1,620 points, followed by the 1,611 level.

Malacca Securities Research

As the economic recovery is taking shape following the declining of COVID-19 cases, the FBM KLCI continued its upward march; the key index is hovering steadily above the 1,600 psychological level.

Meanwhile, tracking the strong rebound in tech heavyweights on Wall Street, we expect bargain hunting activities to emerge on the local technology stocks which have been hammered down over the past week.

Also, the crude palm oil (CPO) price has been trading firmer near the RM4,000 level.

The FBM KLCI found a firmer footing above the 1,600 psychological level after breaking firmly above resistance level around 1,620.

The technical indicators remained positive as the MACD Histogram has extended another green bar while the RSI is hovering above 50.

We expect the upward trend to continue with the resistance pegged around 1,645, followed by 1,660 while the support is envisaged around 1,600-1,620. – March 10, 2021

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