KUALA LUMPUR (March 22): Inter-Pacific Securities Sdn Bhd said The market appears to have hit a plateau, unable to move past the 1,580 points convincingly of late in the absence of more compelling impetuses to provide the much-needed lift.
In its daily bulletin Tuesday, the research house said that the inflationary threat, due to the high crude oil and commodity prices, continue to keep sentiments in check.
It said that at the same time, the unresolved Russia-Ukraine conflict is also keeping sentiments guarded for the time being.
Consequently, the buying interest also looks to remain thin due to the continuing lack of positive leads lack of leads and this is likely to leave the FBM KLCI staying largely range-bound and trend between the 1,580 and 1,595 points for the time being.
“Meanwhile, the interim support and resistance levels are at 1,582 and 1,590 points respectively.
“The broader market shares, however, looks to fare better as there are still pockets of buying interest from retail players.
“This could allow these stocks to make further headway over the near term and to also rebound further from their recent weakness spell.
Separately, Hong Leong Invesment Bank (HLIB) Research said barring any decisive breakdown below 1,545-1,572 levels, the FBM KLCI could still inch higher to retest 1,600-1,620 upside targets in the short term, supported by 1) foreign net inflows YTD: +RM5.58 billion; 2021: -RM3.02 billion), 2) high crude oil and CPO prices, 3) Malaysia’s shift into endemic phase and reopening of international borders on 1 April coupled with 4) the MRT3 announcement last week.
Nevertheless, in its traders’ brief, the research house said cautious sentiment prevails as the risks of heightened Russia-Ukraine conflict and slow progress in the ceasefire talks, elevated inflation,
“FOMC’s latest hawkish tilt outlook, as well as worries over the Covid-19 situation in China, would exact a heavy toll on global economies,” it said.