BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Index-linked stocks closed virtually unchanged as last-minute lift on selected glove maker counters helped the FBM KLCI to close with marginal gains last Friday in an otherwise directionless market environment.
It also helped the key index to recoup all its intraday losses but total traded volumes remained low-to-moderate.
Meanwhile, FBM ACE market stocks still tumbled, stretching its downtrend to a fifth consecutive day albeit other lower liners were mixed.
There is no change to our near-term prognosis and we think that Malaysian equities could remain largely range-bound in view of the dearth of fresh buying impetuses to entice market players to take up new positions.
As it is, many market players are still on the lookout for more noteworthy market developments before deciding on their next course of action, but with the pandemic conditions still gripping sentiments, upward moves will still be limited for the time being.
We have also noted that there are fewer compelling trading ideas for market players to follow and the quiet market conditions could prevail for longer.
For now, there should be mild support to hold the key index above the psychological 1,600 points level, but we think the 1,616-1,620 levels will be a significant hurdle for the FBM KLCI to pass.
Similarly, we see the 1,600-level serving as a major support for now, which is followed by the 1,590 level.
Malacca Securities Research
The FBM KLCI finished marginally higher last week on the back of persistent buying support in glove counters despite weak market sentiment on the broader market.
Investors’ interest returned to the glove stocks as concerns loomed over the possible new wave of COVID-19 cases.
We expect the local bourse to extend its sideways move as investors may weigh the progress of the vaccination programme and the recent spike in the number of daily COVID-19 confirmed cases which will be detrimental to the economy.
Meanwhile, crude palm oil (CPO) price has seen a surge back above RM3,700/metric tonne level.
The FBM KLCI posted marginal gains last week to remain in the consolidation band.
Technical indicators turned mixed as the MACD Histogram has turned into a green bar, while the RSI was hovering below the 50 level.
The key index is expected to extend its sideways move, with resistance pegged along 1,615-1,635, while support is set at 1,565, followed by 1,545. – April 19, 2021
