KUALA LUMPUR (March 31): Hong Leong Investment Bank (HLIB) said the FBM KLCI may stay volatile (supports: 1,565-1,573; resistances: 1,600-1,620) amid heightened Russia-Ukraine conflict (despite ongoing ceasefire talks), Shanghai’s restricted lockdowns, elevated inflation and worries of the Fed can achieve a “soft landing” for the US economy.

In a traders’ brief on Thursday (March 31), HLIB however said the downside risk is likely to be well-cushioned by: i) persistent foreign net inflows; ii) high crude oil and CPO prices; iii) Malaysia’s shift into endemic phase and reopening of international borders on April 1; and iv) a possible “election rally” on the horizon.

Meanwhile, Inter-Pacific Securities Sdn Bhd said market conditions remain fluid as there are still few noteworthy catalysts to provide the necessary lift,

In its daily bulletin on Thursday, the research house said the cautiousness remains with the lingering geopolitical and cost-push concerns keeping market players wary.

It said as a result, sentiments are likely to stay guarded and the key index is poised to drift further.

“This also makes the 1,600 level a significant hurdle to clear over the near term as fresh buying is still anemic and is likely to remain so until a new direction is found.

“There are interim resistances at 1,590 and 1,595 points, with the 1,580 level the immediate support. Below that the other support is at 1,577 points,” it said.

Inter-Pacific said that similarly, the lower liners and broader market shares are on a drifting mode due to the lack of direction.

“With market interest staying largely moribund, most of these stocks are also likely to remain on a sideway-to-lower trend for the time being,” it said.