BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
MALAYSIAN equities retreated once again as profit taking activities took hold at the start of week.
Prompting the profit taking was also the downturn in regional equity markets and as a result stocks that made headway last week, particularly telco stocks, were among the main losers.
Conditions in the broader market were also festered by the new selling and lack of fresh buying that saw market breadth remaining negative and traded volumes thinning further.
Although the key index has managed to climb back above the 1,600 psychological level, we are in the view that overall market conditions are still largely indifferent as there are fewer noteworthy leads for market players to follow.
The lack of leads is also keeping more market participants on the sidelines and this is further fortifying the unexciting near-term market outlook, in our view.
Therefore, we think the market could start to drift once again with a prolonging mild downward bias in view of the lower participation rate.
The 1,600 level remains the key support for now, with the 1,590 level being the lower support. Meanwhile, the hurdles are at 1,610 and 1,620 respectively.
Malacca Securities Research
In tandem with the regional weakness, the FBM KLCI staged a pullback after a three-session climb as profit taking on telecommunication and selected heavyweights weighed.
Amid the lack of fresh catalyst, the local bourse may stage a further pullback, but the weakness may be cushioned by technical rebound.
The unstable number of COVID-19 daily confirmed cases which resulted in the extension of the conditional movement control order (CMCO) and recovery MCO (RMCO) in several states may also impact on the smoother economic recovery.
Commodities-wise, crude palm oil (CPO) price slipped below RM3,700/metric tonne level.
The FBM KLCI snapped the three-session gains to register a mild pullback amid continued selling in foreign funds.
Technical indicators, however, turned positive as the MACD Histogram has extended a green bar, while the RSI was hovering above the 50 level.
While market sentiment remains cautious, a short-term rebound may be seen with resistance envisaged at 1,615-1,635, while the support level is pegged along 1,565-1,575. – April 13, 2021
