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 as market players take advantage of the positive undertone to pick up laggards and increase rotational plays that allowed both market breadth and depth to improve further.

In the process, the FBM KLCI closed at its highest level for the year. The fresh buying was also broad-based with many of the lower liners and broader market counters also seeing renewed interest and mounting a more sustainable rebound.

All-in-all, Malaysian equities have done well to break its downward spell that has engulfed the FBM KLCI over the past two months.

However, after gaining some 4% over the past few sessions, the market condition is starting to look toppish again even as there are no immediate signs of a pullback as yet.

This may slow the key index’s ascend as it approaches the psychological 1,650 level which is the next major hurdle.

Therefore, further upsides are likely to become more measured as we see profit taking activities increasing, thus leaving a choppy trail over the near term, particularly among stocks that made significantly gains over the past few sessions.

Further above the 1,650 level, the other resistance level is at around the 1,660 level while the supports are located at the 1,628 and 1,620 levels for the time being.

Malacca Securities Research

Taking cues from the overnight rally on Wall Street where the Dow made a record closing, we believe buying interest may pick up on the local front with the FBM KLCI extending its gains today.

Also, as the daily COVID-19 confirmed cases continues to dip below the 2,000 mark, market players are likely to favour the re-opening of business activities moving forward; we also believe that domestic travel will kick start the tourism economy as of this juncture.

However, the technology sector may see mild consolidation phase as Nasdaq took another round of breather.

On commodities, crude palm oil (CPO) has climbed higher to RM3,974 per tonne level while the Brent oil price has seen some mild rebound.

The FBM KLCI climbed for the fourth straight session to close near the 1,640 level. The MACD Histogram extended another green bar, while the RSI is hovering above 50.

We expect further upside to be seen on the key index with resistance envisaged around 1,650-1,660 while the support is pegged along 1,600-1,620. – Mar 11, 2021

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