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 FBM KLCI pulled off another day of gains, rising in tandem with the positivity on Wall Street and climbing back above the 1,450 level at the close on optimism that the US Federal Reserve may reduce interest rates next year.

The gains also extended to the broader market shares with healthcare stocks emerging as the day’s big movers on the resurgence of COVID-19 cases.

Unsurprisingly, market breadth remained positive while traded volumes continue to improve with 4.25 billion units changing hands.

The key index’s recent headway is seen as a positive recovery after the recent pullback that has seen it bucked the gains in many key global indices.

The rebound is also encouraging as it allowed the FBM KLCI to play catch up to the recent gains in the key global indices.

As a result, market conditions are looking healthier and could set up the key index for further gains, particularly on window dressing activities ahead of the year-end book closing over the coming fortnight.

However, there may be mild profit taking ahead of the weekend and this may slow the key index’s ascend.

As a result, the FBM KLCI could undergo a mild retreat but it should be able to stay above the psychological 1,450 points level to end the week. Further below, there is support at the 1,445 level while the hurdles are now at 1,460 points and 1,463 points respectively.

Malacca Securities Research

The FBM KLCI continues to rebound for the fourth session, lifted by QL Resources Bhd, Petronas Gas Bhd and Press Metal Aluminium Holdings Bhd as well as better sentiment in Hong Kong market.

Again, Wall Street gained momentum with the Dow Jones closing at record close for the second session while S&P500 and Nasdaq rose 0.26% and 0.19% as retail sales grew by 0.3% in the month of November coupled with the optimism that the US Federal Reserve will stay in a dovish stance to lower down the interest rates at least by three times next year.

Given the anticipation of the lower interest rate environment going forward, the market was more positive in the real estate segment.

On the commodity markets, Brent crude prices extended the rebound above US$76/barrel as US dollars fell after the dovish Fed’s statements.

The FBM KLCI ended with a bullish candle after being consolidated over the past five days in a narrow range between 1,441-1,450. The technical readings on the key index have turned positive with the MACD Histogram forming a rounding bottom formation, while the RSI breaching above the 50 level.

The resistance is envisaged around 1,465-1,470 while the support is set at 1,430-1,440. – Dec 15, 2023

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