BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Hong Leong Investment Bank Research
Ahead of the Nuzul Al’Quran holiday tomorrow (April 29) and elevated COVID-19 cases coupled with the crucial US Federal Reserve policy outlook (for clues on tapering of quantitative easing [QE] and policy tightening amid a favourable economic backdrop), the FBM KLCI is likely to remain in a cautious mode after falling below the key downtrend resistance yesterday.
Major supports are situated at 1,585-1,600 while resistances are pegged at the 1,609-1,621-1,635 zones.
For stock selection, we like Frontken Corp Bhd (“buy”; target price: RM3.88) for its unique exposure to leading-edge semiconductor frontend supply chain.
Any price dip in the stock should attract bargain hunters looking for an oversold rebound upside to RM3.48-3.60-3.80 levels.
Its immediate support is capped at the RM3.25-3.10-3.00 zones.
Malacca Securities Research
The FBM KLCI staged a pullback partly dragged by profit taking activities in glove heavyweights following the recent rebound.
We expect investors to remain on tenterhooks and focus on sectors with high earning certainties with the interstate travel ban remaining in force while stricter COVID-19 curbs were implemented in more parts of the country.
Commodities-wise, crude palm oil (CPO) price has seen a surge on the back of gains in soybean oil, while Brent oil price has seen a mild spike.
Meanwhile, a 10-year oil & gas (O&G) services blueprint was launched to push export and R&D.
The FBM KLCI wiped out previous sessions gains as the key index failed to maintain above the 1,615 resistance level.
Technical indicators turned mixed as the MACD Histogram has turned into a red bar, while the RSI was hovering above the 50 level.
The resistance level is pegged along 1,615-1,635, while the support is set around 1,600, followed by 1,565. – April 28, 2021
