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

The FBM KLCI lost further ground at the start of the week, largely in tandem with the regional weakness following a rise in US bond yields and the lack of fresh market direction.

As a result, market breadth became decidedly negative with losers again overwhelming gainers due to the increased profit taking/selling actions among the broader market and lower liners.

The insipid market conditions also resulted in lesser market participation with traded volumes slipping to its lowest level since the start of the month.

The listless market conditions look to continue in the absence of fresh leads, and this could also keep sentiments guarded for longer.

With fewer compelling buying opportunities, coupled with the lofty valuations and the corresponding lower overall market participation, we see market conditions turning more cautious and this may also dim prospects for a firmer recovery now that the key index has slipped below the 1,620 level.

Despite the more cautious market environment, however, the selling pressure is still light for the most part, and we think that further profit taking activities may be measured with the 1,600 points level to serve as a firm support.

In the interim, there is another support at the 1,607 level, while the hurdles are pegged at 1,620 and the 1,640 levels.

Malacca Securities Research

The FBM KLCI retreated for the second session in line with the regional weakness.

Mirroring overnight gains on Wall Street, Nasdaq in particular, we reckon there will be some bargain hunting activities emerging on the local bourse despite cautious market sentiment amid continued political developments.

Commodities-wise, Brent oil price remain sideways while crude palm oil (CPO) price surged. On a side note, another batch of Sinovac COVID-19 vaccine arrived yesterday in the country.

The FBM KLCI slid into negative territory during the eleventh trading hour.

Technical indicators remained mixed as the MACD Histogram has extended another red bar, while the RSI remained above the 50 level.

We believe the key index should trade in consolidation over the near term with resistance set at 1,650 while support is pegged around 1,580-1,600. – March 23. 2021

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