What to expect on Bursa Malaysia on Friday

BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:

Inter-Pacific Research

Key index stocks managed to recoup most of its intraday losses at the end of trading on Wednesday (Sept 15) to close modestly lower after banking stocks found some stability following their sell-off a day earlier.

Nevertheless, many lower liners and broader market shares rebounded on mild bargain hunting that allowed overall losing stocks to narrow the gap to the winners, albeit losers were still slightly ahead.

Although Malaysian equities managed to find some reprieve, the cautionary near-term outlook remains.

Concerns over the potential implementation of windfall taxes and interest rate waivers on loan moratoriums will continue to leave most market players on the sidelines as they await more clarity on the propositions.

In addition, there are also few trading ideas for market players to follow and this could prolong the drifting trend for now.

While the downside bias look to stay, there could still be bouts of support to keep the FBM KLCI above the 1,550 level to end the week. If this level gives way, the next support is at 1,542 points.

On the upside, the resistances are at 1,560 and 1,570 points respectively.

Malacca Securities Research

The FBM KLCI drifted lower earlier Wednesday (Sept 15) but rebounded to close flat on last-minute buying amid cautious market sentiment.

Nevertheless, we believe bargain hunting activities should emerge with the return of foreign participation in our local stock markets on the back of our reopening of economic activities following several relaxations of standard operating procedures (SOPs) under the National Recovery Plan (NRP).

Month-to-date, foreigners have registered an inflow of RM904.6 mil. Commodities-wise, crude oil price hovered above US$75/barrel, crude palm oil (CPO) price surged while gold price retreated.

The FBM KLCI fell below the daily EMA120 level as the key index continued hovering below 1,560 level. Technical indicators remained negative as the MACD Histogram has extended a red bar while the RSI hovered below the 50 level.

Resistance is located at 1,580-1,600 while support is pegged along 1,535. – Sept 17, 2021

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