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

There were more gains yesterday as the FBM KLCI moved above the 1,455 level on mild gains in tune with the upsides among regional indices.

However, the key index’s gains were more modest compared to the upsides among the regional indices.

Banking stocks were the main movers among heavyweights while technology stocks were the main gainers in the broader market. As a result, market breadth was positive with traded volumes surging past the 4 billion shares mark.

Despite the sustained positivity, market conditions are likely to remain range-bound with the key index to linger within the 1,450 and 1,460 levels in the final trading day of year.

The mild upside bias could also remain to allow the FBM KLCI to possibly end the year nearer to the 1,460 level. Nevertheless, firmer buying interest may still be elusive due to the lack of catalysts and with most market participants still on their year-end break.

On the flip side, there are also little selling pressure which could allow the bouts of window dressing activities to sustain to tip the index higher. Beyond the above support level, there is an interim support at the 1,455 level while the other hurdle is at the recent high of 1,463 points.

Malacca Securities Research

The FBM KLCI extended its rebound for the second session as on-going window dressing activities lifted the FBM KLCI with buying support seen within the banking and plantation heavyweights.

Meanwhile, the Dow Jones and S&P500 flirted along the all-time high zone on the US stock markets.

The expectation of three interest rate cuts next year by the US Federal Reserve will continue to support the overall market conditions in the US, eventually spilling over towards the stocks on the local front.

Also, with the on-going window dressing activities should lift the FBM KLCI higher for the final day of the year.

On the commodity markets, Brent crude traded below the US$78/barrel mark as the latest US government data showed inventory levels at Cushing have expanded, indicating a growing supply which surpasses demand while shipping firms are now resuming the Red Sea route as the area is being safeguarded by US-led maritime task force.

The FBM KLCI ended higher for the second consecutive day. However, the technical readings on the key index were mixed with the MACD Histogram extending another negative bar while the RSI maintains above the 50 level.

The resistance is envisaged around 1,470-1,480 while the support is set at 1,440-1,450. – Dec 29, 2023

Subscribe and get top news delivered to your Inbox everyday for FREE