BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Hong Leong Investment Bank Research
In a holiday-shortened week (Nuzul Al’Quran holiday on April 29), escalating COVID-19 cases globally should sustain active interest in glove stocks while selected bargain hunting on the sell-down recovery stocks may bode well for further FBM KLCI technical rebound.
Meanwhile, the Federal Open Market Committee (FOMC) meeting outcome (April 29 at 2am) may draw investors’ focus for clues on tapering of quantitative easing (QEs) and policy tightening in light of the recent strong US economic data.
Major supports are situated at 1,609-1,600-1,590 while resistances are pegged at the 1,642-1,654-1,674 zones.
On stock selection, after plunging 36% from 52-week high of 71.5 sen (Oct 5) to a low of 46 sen (April 1), D’nonce Technology Bhd has drifted sideways before closing at 48 sen yesterday.
Overall, D’nonce’s prospects remain bright as it continues to ride on growth from the healthcare (serving major glove producers based in Thailand by supplying packaging materials) and electrical & electronic (E&E) sectors (serving the semiconductor and memory drive manufacturers by providing cleanroom services, box-build assembly and plastic components parts).
Malacca Securities Research
The FBM KLCI extended gains for the third consecutive session, partly powered by the persistent buying interest in glove counters on the back of surging COVID-19 infection in several countries such as India and Brazil.
Nevertheless, the upward momentum in glove stocks may take a backseat amid waning COVID-19 cases with the ongoing vaccination programme.
Meanwhile, we believe market sentiment may remain cautious ahead of any potential lockdown announcement in the near future.
The FBM KLCI closed above the EMA20 level for the second session, crossed the resistance of 1,615 level,
Technical indicators remained positive as the MACD Histogram has extended a green bar, while the RSI was hovering above the 50 level.
Should the key index manage to stay above 1,615, the next resistance is pegged at 1,635, while the support will be located at 1,600-1,615. – April 27, 2021
