BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malaysian equities continue to head up and on Friday with telco stocks lifting the key index after a merger announcement from Celcom Axiata and Digi.com Bhd.
Their gains cushioned the profit taking on glove maker stocks that were the big movers a day earlier.
Elsewhere, conditions were mixed-to-lower with many of the lower liners succumbing to quick profit taking following their gains the previous day.
Traded volumes, meanwhile, thinned again as buying turned lacklustre ahead of the weekend.
With market condition remains mildly positive, we see further near-term gains with rotational interest providing the lift to the FBM KLCI’s near term moves.
We see market players continuing to capitalise on the relatively calm market conditions to undertake more trading moves on some of the recent laggards, while some of the big movers could see some mild profit taking actions.
The rotating moves, however, could also limit the near-term gains and this could see the upsides limited to around the 1,617 level which is the immediate resistance given the 1,620 level potentially is still a significant hurdle to penetrate.
At the same time, we also note that selling pressure is still mild for the most part and this should see the 1,600-level serving as the support for now. The other support is at 1,590 points.
Malacca Securities Research
The FBM KLCI was locked in its third consecutive gains last Friday as focus was shifted from glove counters to the telecommunication sector following Celcom-Digi’s merger talks.
Tracking the overnight improvement on Wall Street, the local bourse may trend on a slightly positive tone after hovering firmer above the critical 1,600 level.
However, we believe the market sentiment will remain choppy amid rising COVID-19 cases (albeit the ongoing vaccine roll-out plan) coupled with the development regarding the new wave of COVID-19 outbreak across Europe and Asia.
After staying above the 1,600 level for the third session, we believe the FBM KLCI may trend higher for the week.
Technical indicators remain as the MACD Histogram has extended a green bar, while the RSI has crossed above the 50 level.
Resistance is pegged at 1,615-1,635, while the support level is set at 1,565-1,575.- April 12, 2021