KUALA LUMPUR (May 9): Apex Securities Berhad expects the local bourse to continue to trend sideways after the FBM KLCI retreated after hitting 1,600 resistance level amid weakened sentiment across global stock markets and investors await for fresh catalyst.

In a market preview on Thursday, the research house said that still, the extended inflows of foreign funds are likely to provide support to the local stock market.

It said that economic wise, investors are now awaiting the release of Malaysia’s retail sales as well as BNM and Bank of England interest rate decision to be release today, which the research house expects the central bank to stay pat onto its decision, owing to the stable economic fundamentals.

“Moving forward, we reckon the decline in US crude stock pile may provide bargain hunting opportunities within the oil & gas stocks.

“Meanwhile, we also advocate investor turn their attention to the plantation sector on the back of the recovery in CPO price,” it said.

Apex said the FBM KLCI formed another bullish candle as the key index breached above the 1,600 psychological level.

“Indicators stayed positive as the MACD Line trends above the Signal Line, while the RSI lingered in the overbought territory.

“The next resistance located at 1,620. Support is now envisaged around 1,560,” it said.

Meanwhile, in a separate note, Rakuten Trade said it expects the index to hover between the 1,600-1,615 as it sees foreign funds will continue to snap up local heavyweights, namely banks and telcos which are still trading at attractive valuations.

https://www.theedgemarkets.com/node/710877