What to expect on Bursa Malaysia on Monday

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

Inter-Pacific Research

Malaysian equities performed above expectations on Friday to end the week on an upbeat note that also helped the key index to end the week virtually unchanged from the week earlier.

For the most part, however, market conditions were choppy with once again late buying on selected index-linked stocks that helped to lift the key index to a firmer close.

Many lower liners also ended the week on a sanguine note on bargain hunting action to help market breadth return to the positive side.

After recent strong upticks, the key index could now be attempting to establish a base around the 1,600 points level amid optimism over a gradual re-opening of the country’s economy despite the still high nationwide COVID-19 cases.

Thus far, the bouts of profit taking has been well absorbed with selective buying still providing the much-needed support.

We think that the key index could still make some headway as it looks to fortify its position near the psychological 1,600 level despite buying interest easing slightly due to fewer compelling buying opportunities.

Rotational buying is likely to sustain the market’s near-term position with the intermediate hurdle at 1,595 point before the 1,600 level while the supports remain at 1,580 and 1,570 points respectively.

Malacca Securities Research

The FBM KLCI finished on a positive note after a volatile session with selected banking, plantation and shipping counters taking the lead despite mixed performances in the regional markets.

Investors may look ahead to Malaysia’s unemployment rate and the Bank Negara Malaysia’s decision on interest rate which will be released on Thursday.

Meanwhile, crude palm oil (CPO) price extended its gain to close above RM4,300, gold price rose, while crude oil price retreated.

Still, we expect the recovery tone for the economic activities to pick up with the decent vaccination rate at this juncture.

The FBM KLCI climbed back above the SMA200 level as the key index surged in the final trading hour.

Technical indicators remained mildly negative as the MACD Histogram has extended a red bar while the RSI continued hovering below the 70 level. Resistance is located at 1,600 while the support is pegged along 1,580. – Sept 6, 2021

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