BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities went nowhere as it managed to find some measure of buying support last Friday that allowed them to end the week on a positive note.
The key index was largely lifted by gains in glove maker stocks amid the heightened COVID-19 cases, but the lower liners and broader market shares performed better on the return of mild bargain hunting activities on some of the recently beaten down stocks.
Volume remained moderate even as market breadth was positive for the day.
Although the key index managed to find support, its momentum remains indifferent for the most part due to the lack of fresh buying impetuses on most index heavyweights.
Except for glove maker stocks, new developments on the other FBM KLCI constituents remains thin and this could keep most of the other constituents lingering within a tight range for the time being.
Nevertheless, with the key index holding on the 1,600 points level, coupled with the continuing nibbling of glove maker stocks, we think that the mild upsides may be preserved over the near term.
In addition, the positive closing in key global indices last Friday could also lend some backing for key index stocks to keep its recent gains. Below the 1,600 support, the other support is at the 1,590 level, while the resistances are located at 1,615-1,620 levels.
Malacca Securities Research
The FBM KLCI finished the week on a flat note amid tepid market sentiment, but the key index was supported by buying interest in glove counters over the past week.
We opine the key index may continue to trend sideways in the holiday shortened week without significant catalyst in the market.
The market may focus on the US’s Federal Reserve interest rates decision to gauge their investing direction.
Trading interest may remain robust on small cap and lower liners.
The FBM KLCI stayed firmer above the 1,600 psychological level but struggled to cross above its immediate resistance level at 1,615.
Technical indicators remained positive as the MACD Histogram has turned into a green bar, while the RSI was hovering above the 50 level.
The key index is likely to trade in consolidation mode with resistance envisaged along 1,615-1,635, while the support is set at 1,545-1,565. – April 26, 2021
