BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities rebounded yesterday, with glove maker stocks leading the charge amid a surge in COVID-19 cases in many Asian countries, thus renewing hopes that glove demand will remain firm over the foreseeable future.
At the same time, many other index heavyweights also tipped up on mild bargain hunting from local institutions, but the broader market remained mixed-to-lower as market interest stayed restrained for the most part in the absence of fresh leads.
Although yesterday’s upsides were welcomed to reverse some of the dull market conditions, the general market environment remains very much insipid in view of the few available catalysts to ensure a sustainable uptrend.
As such, quick profit taking action could take some shine off yesterday’s upsides ahead of the weekend albeit there could still be some nibbling on glove maker stocks in view of the rising COVID-19 cases.
Under the prevailing environment, the whipsaw conditions could also prevail for longer with the key index likely to remain range-bound within the 1,600 and 1,615 levels for now.
The other support and resistances are at 1,590 and 1,620 levels respectively.
Malacca Securities Research
Positive cues from the regional peers coupled with extended buying momentum in glove heavyweights pushed the FBM KLCI to close above the 1,600 level.
While investors may be piling into stocks with higher earnings certainties ahead of the earnings season, market sentiment could remain jittery on the back of higher local daily COVID-19 confirmed cases as well as weak overnight performance on Wall Street.
Commodities-wise, crude palm oil (CPO) price was on firmer footing, trending nearer to the RM4,000 level, while Brent oil may be heading higher for the session ahead. Moreover, lumber futures are trading around an all-time-high region.
The FBM KLCI returned above the 1,600 level with lower trading volume. Technical indicators have become positive as the MACD Histogram has turned into a green bar, while the RSI was hovering above the 50 level.
Volatility may remain in place as the key index struggled to cross above the resistance at 1,615-1,635 while support is located at 1,545-1,565. – April 23, 2021
