BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities managed to rebound yesterday, a day after it succumbed to a steep sell-down with bargain hunting shoring up some of the beaten down stocks.
This helped to reverse the negative market breadth from a day ago with the broad-based buying putting gainers ahead of losers yesterday, albeit total volumes remain moderate.
Many of the lower liner and broader market indices also posted recoveries, especially the technology index on the rebound of some sector bellwethers like Vitrox Corporation Bhd and Malaysian Pacific Industries Bhd.
We think Malaysian equities could end the week on a firmer note, helped by the positive undertone in global indices, particularly as US equities continue to register new all-time highs overnight.
While we still see few domestic catalysts, coupled with the ongoing political uncertainties, the rebound should still be able to sustain as market players take advantage of the near-term calmness to undertaking short-term trades.
However, we also see quick profit taking activities likely to prevail and this could keep the upsides measured.
Therefore, we think that the near-term upsides could be limited to around the 1,590 levels with the 1,600 psychological level still a distant target. The supports, on the other hand, are located at 1,573 and 1,566 points respectively.
Malacca Securities Research
The FBM KLCI rebounded after a heavy sell-down in the prior session, supported by bargain hunting as investors took cue from the regional gains and the eight-month high IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) in March 2020.
Meanwhile, tracking the overnight improvement at Wall Street, we expect the local bourse may extend the rebound formation, especially in the technology stocks, mirroring the gains in Nasdaq.
Commodities wise, both crude palm oil price and oil price have seen a strong surge of more than 3.0%.
The FBM KLCI snapped the two-session losing streak and finished 0.6% higher.
However, the MACD Histogram has extended another red bar, while the RSI is still hovering below the 50 level.
We believe the key index may see some rebound, but upside may be capped. Resistance is pegged at 1,600-1,625, while the support is located around 1,550-1,560. – April 2, 2021
