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

After a two-day rally, the FBM KLCI succumbed to mild profit taking yesterday. The key index was down the entire day but it managed to recoup some of its intraday losses to hold above the 1,460 level at the close.

The pullback was also in tandem with the weaker regional indices that were affected by China’s continuing property sector woes.

The broader market shares also retreated yesterday with market breadth turning negative. At the same time, traded volumes retraced by nearly 12%.

By and large, the market’s undertone remains mildly positive, riding on the reduced odds of further interest rate hikes that should help to restore some confidence among market players.

At the same time, the key index has done well to hold above the 1,460-level yesterday which was helped by continuing mild bargain hunting, particularly from foreign funds.

Market conditions could still hold steady in the day ahead as market players wait for the release of the country’s 3Q2023 GDP data where the consensus estimate is for a 3.3% year-on-year (yoy) growth vs the 2.9% yoy growth in the preceding quarter.

Even with the mild bouts of buying support, the key index may still be range-bound ahead of the weekend as the mid-week gains are digested. This could see the key index lingering within the 1,460 and 1,467 levels for now.

The other support and resistance levels are at 1,455 and 1,472 levels respectively.

Malacca Securities Research

The FBM KLCI ended marginally lower amid profit taking activities following a two-day ally.

Similarly, Wall Street traded flat for the session after a significant run as investors re-assessed the softer economic data where the impact from the elevated interest rate hike environment was noticed.

We believe the overall market sentiment may slow down further as investors could be eyeing on the home start and building permits data later tonight.

Thus, the FBM KLCI may expect further profit taking activities with traders slowing down on their exposure ahead of the weekend break.

On the commodity markets, Brent crude prices traded below the US$78/barrel on the back of rising inventories and slowing demand amid the softer economic activities.

The FBM KLCI ended marginally lower, forming a small hammer candle. The technical readings on the key index are mixed with the MACD Histogram extending another negative bar while the RSI maintains above 50.

The resistance is pegged around 1,470-1,480 while the support is at 1,440-1,455. – Nov 17, 2023

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