BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
PublicInvest Research
The FBM KLCI might open higher today as global share indices extended gains and Treasury yields rose on Thursday after strong US economic data and the Federal Reserve’s commitment to continue supporting the economy fuelled confidence in a recovery.
US economic growth accelerated in the first quarter, fuelled by massive government aid to households and businesses, charting the course for what is expected to be the strongest annual performance in nearly four decades.
The Dow Jones Industrial Average rose 239.98 points or 0.71% to 34,060.36, the S&P 500 gained 28.29 points or 0.68% to 4,211.47 and the Nasdaq Composite added 31.52 points or 0.22% to 14,082.55.
Malacca Securities Research
After recouping all the intraday losses, the FBM KLCI closed with marginal gains of 0.1% and remained above 1,600 psychological level.
Meanwhile, we expect the glove heavyweights to resume its rebound move over the near term given the rising COVID-19 infections globally.
On the commodities front, crude palm oil (CPO) price staged a pullback after recent rallies, while the oil price climbed above US$68.
The FBM KLCI finished with intraday high prior to the public holiday, showing a hammer candle on Wednesday.
Technical indicators remained mixed as the MACD Histogram has extended a red bar, while the RSI was hovering above the 50 level.
However, we expect the market to trade in consolidation with resistance level pegged along 1,615-1,635, while the support is set around 1,565-1,600. – April 30, 2021
