What to expect on Bursa Malaysia this Friday

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

Inter-Pacific Research

The key index continues to lose ground, unable to hold on to its recent gains as profit taking remained pronounced that left it close to the psychological 1,450 level at the end of yesterday’s trade.

The losses were also largely in tune with the weakness in regional indices but the broader market shares were still firming up on continuing trading activities.

However, their gains were more measured and market breadth become negative on relatively unchanged traded volumes for the day.

With the FBM KLCI’s inability to hold on to its recent gains, market conditions are turning indifferent again, particularly with the 1,465 level – the next “make or break” line – proving to be a formidable level to clear.

As a result, it appears that the key index will drift again as the follow through buying interest remains thin and is unable to generate sufficient support for the key index to make the pass.

At the same time, the pullback on Wall Street overnight and the upcoming long weekend break could see most market players continuing to retreat to the sidelines for now.

This also means the 1,450 level is under threat again albeit we think the key index could stay close to the level for now as it looks to garner some support after the recent falls. Further below, the supports are at the 1,446-1,448 levels, followed by the 1,442 level.

The resistances are at 1,455-1,460 levels with the 1,462-1,465 levels serving as the major hurdles.

Malacca Securities Research

The FBM KLCI closed weaker for the third session following the recent breakout above the 1,440-1,445 zones amid profit taking activities.

Following the hawkish comments from the US Federal Reserve’s chairman, Wall Street ended softer for the session and we expect some selling interest to spill over towards the local stock exchange.

Hence, upside may be limited for the FBM KLCI for the near term. However, we believe traders could shift their attention to the on-going reporting season and look for opportunities on stocks with better growth prospects.

On the commodity markets, Brent crude prices stayed below the US$80/barrel market while crude palm oil (CPO) traded around the RM3,750/metric tonne zone.

The FBM KLCI ended lower for the third consecutive session. The technical readings on the key index are mixed with the MACD Histogram forming a rounding top formation while the RSI maintains above 50.

The resistance is pegged around 1,470-1,480 while the support is at 1,440-1,450. – Nov 10, 2023

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