BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities ended the week on a positive note with bargain hunting activities helping to shore up the market to break the recent downward spell.
The gains were broad-based with more gainers than losers as the lower liners and broader market shares were also held up by mild bargain hunting activities after their recent indifferent trend.
Notwithstanding the gains, market participation remained tepid with traded volumes continuing to thin in the absence of significant leads.
The start to the week could see more recovery in tandem with the gains on global indices at the end of last week.
Global equities were buoyed by the prospects of stronger economic recovery ahead amid the easing COVID-19 conditions and we see this positivity extending to Malaysian equities.
Still, it remains to be seen how much the benefits could flow to the Malaysian stock market as the domestic market environment is still beset by political uncertainties that could leave many market players on the sidelines until a clearer market direction can be determined.
Therefore, we think that any gains may still be modest for the time being as the prevailing cautiousness is likely to prompt quick profit taking actions that would limit the potential gains.
On the upside, we see the 1,610-1,620 levels serving as the immediate hurdles, while the key index would also attempt to stay above the psychological 1,600 level for now, failing which the 1,590 level will be the next support.
Malacca Securities Research
In line with the regional market improvements, the final-hour buying pushed the FBM KLCI into positive territory.
The local market sentiment may extend its positive move on Wall Street last Friday, but the continued political developments may cap the upside potential on the local bourse.
Meanwhile, oil price may see improvement amid concerns over Suez Canal blockage which may potentially lead to some supply disruptions.
Moreover, market players may focus on shipping rates in the near term.
The FBM KLCI finished the week above the 1,600 psychological level after a volatile trading session.
However, technical indicators remained negative as the MACD Histogram has extended another red bar, while the RSI was hovering below the 50 level.
Further upside could be seen if the key index stayed above the 1,600 level with resistance pegged at 1,625-1,64 while support is set at 1,580 if the key index fell below 1,600. – March 29, 2021
