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

It was yet another down day on Bursa Malaysia with the key index slipping below the 1,600 level again as the selling pressure intensified on glove maker and telco stocks.

Much of the selling was from foreign sources that also caused the FBM KLCI to buck its regional peers’ upticks.

Meanwhile, selling also permeated to the broader market resulting in losing stocks overwhelming gaining ones more than a 2-to-1 ratio. Total volumes for the day, however, remained moderate.

We maintain our view that the Malaysian market environment is insipid amid the lack of noteworthy leads, particularly from domestic sources to provide the much-needed impetuses to sustain a decent uptrend.

In addition, equity valuations are not overly compelling with the lingering pandemic conditions potentially sapping the prospects for a firmer economic and corporate earnings recovery in the current quarter and may also delay the recovery to later in the year if the pandemic remains unresolved.

With the downside risk still prevailing, we think it would be difficult for the key index to mount any meaningful rebound over the near term.

Instead, we expect it to linger within a small range around the 1,600 points level with mild supports helping to absorb some of the selling pressure.

There are supports at 1,590 and 1,580 points, while the resistances remain at 1,610 and 1,620 points respectively.

Malacca Securities Research

Extended selling pressure has again dragged the FBM KLCI below the critical 1,600 level amid cautious market sentiment as COVID-19 cases remained obstinately high.

We believe the local bourse may continue to trade sideways with negative-bias mode in view of a lack of fresh catalysts.

In the US, the Nasdaq outperformed other major indexes with more than 1% gains. Commodities-wise, crude palm oil (CPO) price may continue to face downside pressure as inventory level continues to build-up.

The FBM KLCI extended its losing streak and slipped below the 1,600 psychological level accompanied by lower trading volume, closing below the daily EMA 60 level.

Technical indicators turned negative with the MACD Histogram turning red, while the RSI was hovering below the 50 level.

The key index may trade sideways and should it climb above the 1,600 level, the resistances are pegged along 1,615-1,635, while the support level is set at 1,575. – April 14, 2021

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