KUALA LUMPUR (March 18): Hong Leong Investment Bank (HLIB) Research said that tracking further relief rally from Wall Street, the FBM KLCI could inch higher to retest 1,600-1,620 levels but cautious sentiment prevails, as investors continue to weigh on the slow progress in Russia-Ukraine ceasefire talks, FOMC’s latest hawkish tilt policy coupled with worries over the Covid-19 situation in China.

In a traders brief Friday (March 18), the research house, however, said with the Malaysian bourse still showing resilience in the face of increased foreign net inflows (29th session of straight net inflows; year to date: +RM5.56 billion; 2021: -RM3.02 billion), high crude oil and crude palm oil prices, as well as the nations’ shift into endemic phase and reopening of international borders on April 1, any pullback is likely to be cushioned near 1,530-1,545-1,565 territory.

Meanwhile, Inter-Pacific Securities Sdn Bhd said that with sentiments staying positive, the key index is poised for another positive session ahead and to possibly end the week on a high note.

In its daily bulletin, the research house said much of the impetus will be from the overnight gains on Wall Street that continues to see a silver lining in the global economy despite the prospects of higher interest rates.

It said the positive undertone should also continue to provide the catalyst for market players to nibble on some of the recent big losers and the sustained gains could allow the key index to re-test the 1,600 level, even though there could still be mild bouts of profit taking ahead of the weekend that may temper the upside potential.

“As such, the 1,600 level could prove to be a significant hurdle for the key index to pass over the near term.

“In between, there is a resistance at the 1,596 level, while the supports are at 1,585 and 1,580 points respectively,” it said.

Inter-Pacific said many of the lower liners and broader market shares are also benefiting from the improved sentiments.

“With many of these stocks still deemed oversold, there should be more near-term upsides as bargain hunting looks to continue on some [of] these recently beaten down stocks,” it said.