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

Once again, the FBM KLCI was left in a limbo as it lost ground yesterday only to find support at the 1,600 points level in a day where the market’s condition was still iffy and directionless.

Much of the uncertainties stems from concerns over the rising COVID-19 cases and its effects on the economy.

Similarly, the lower liners and broader market shares were weak with many of those shares succumbing to a new round of selling, leaving the overall market breadth on the negative side.

There is no change to our view that the Malaysian equity market conditions are still fraught with uncertainties, particularly as the

COVID-19 conditions shows little signs of abating. At the same time, concerns are mounting over the country’s economic recovery prospects that may be stalled again by the prolonged pandemic conditions, affecting the corresponding corporate earnings recovery as well.

Amid the continuing market uncertainties, we think that Malaysian equities will continue to drift further as fresh buying impetuses are still thin.

We also think that the 1,600-support level is under threat again and if it gives way, the support moves to 1,590 and 1,580 respectively. The hurdles, meanwhile, are at 1,615-1,620 levels.

Malacca Securities Research

The FBM KLCI closed lower as market sentiment remained cautious despite the roll-out of the second phase of COVID-19 vaccination.

We expect the local bourse to continue its sideways movement on the back of market concerns over inoculation rate coupled with the daily COVID-19 confirmed cases staying above the 2,000 level for the fifth consecutive day.

Meanwhile, the technology sector has seen a surge after the announcement regarding Microsoft partnership under the US$1 bil Bersama Malaysia initiative.

The FBM KLCI snapped the three-session winning streak and retreated to close slightly above the 1,600 psychological level.

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

We expect the key index to hover along the 1,600 level over the near term, with resistance pegged along 1,615-1,635, while support is set at 1,545-1,565. – April 20, 2021

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