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 stocks regained some footing last Friday in what is deemed to be mild follow-through buying to end the week.

Expectedly, however, the gains were benign as bouts of intraday profit taking activities tempered the upsides until late bargain hunting on some of the heavyweights allowed the key index to end the session on a positive note.

The broader market and lower liners fared better but overall traded volumes remain on thin side.

The start of the week could see further mild gains amid the continuing light bargain hunting activities as market players look to nibble on stocks that may provide longer term value and potential recovery plays.

This comes on the back of the little selling pressure that would allow market players to focus on stocks that may instead benefit from the resumption of more economic activities in due course.

Even with the bargain hunting some value stocks, however, we think that the gains could still be limited due to the mostly lofty valuations.

As a result, we still think there remains some wait-and-see undercurrent that may keep the key index lingering within the 1,590 and 1,600 points levels for longer, even though there should be more near-term upsides.

The other support is at the 1,580 level, while there is an intermediate resistance at 1,590 points.

Malacca Securities Research

The FBM KLCI finished the week on a softer note after a sharp sell down last Wednesday and we expect the market to remain on the cautious tone.

However, we opine that investors are likely to remain optimistic on technology stocks given the positive close last week on Wall Street.

As some of the global markets are still off for public holiday, we expect trading activities may tone down for the day and the FBM KLCI should hover below the 1,600 psychological level for the time being.

Technical indicators have become mixed as the MACD Histogram has turned into a green bar, while the RSI was hovering below the 50 level.

With bargain hunting continued, we believe the FBM KLCI may continue to trade sideways with resistance pegged at 1,600-1,625; while support is set along 1,550-1,560. – April 5, 2021

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