BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The indifference in the Malaysian equity market continued at the start of the week with the key index still trying to find a new direction in the absence of substantive leads.
As a result, market conditions stayed tepid with most stocks drifted instead despite glove maker stocks again succumbing to the selling pressure to lead the key index marginally lower for the day.
Traded volumes remain moderate with market breadth also becoming mixed.
Market conditions, for the most part, are likely to remain tepid, undermined by the lack of noteworthy leads and the ongoing political concerns that would also keep sentiments on the cautious side for longer.
In addition, there are fewer compelling market themes to strengthen the buying interest with the valuation of most stocks already reflective of the impending corporate earnings recovery for 2021.
Therefore, we are in the view that the sideway trend is likely to continue for the time being.
Even the positive performance among overseas equity markets are unlikely to provide much boost to the local market as lingering cautiousness could keep any upsides capped.
Overhead hurdles are pegged at 1,590 points and the psychological 1,600 level, while the supports are set at 1,580 and 1,573 points respectively.
Malacca Securities Research
The FBM KLCI struggled to sustain its gains during the first trading hour as the key index succumbed to profit taking led by gloves counters and selected banking heavyweights.
On the broader market, we believe the Mass Rapid Transit Line 3 (MRT3) project coupled with the reversion of East Coast Rail Link (ECRL) to the original alignment may continue to serve as an upside catalyst for the construction sector.
Meanwhile, the COVID-19 vaccination Phase 2 programme is set to begin on April 19 in eight states.
On the Brent crude oil, it has fallen 3.7% overnight.
The FBM KLCI snapped its two-session gains and staged a mild pullback and still hovers below the 1,600 psychological level.
Technical indicators remained mixed as the MACD Histogram has extended a green bar, while the RSI continued to hover below the 50 level.
We reckon the key index may continue to trade sideways with resistance pegged around 1,600-1,625 while support is located along 1,550-1,560. – April 6, 2021
