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’s uptrend was preserved for a second successive day, cumulating with the key index jumping to its highest level in almost a year.

The key index also closed near the 1,480 level as YTL Power Bhd emerged as one to the biggest gainer on sustained bargain hunting.

The broader market also followed suit with many stocks chalking up decent gains to allow market breadth to remain positive. Meanwhile, market interest picked up to surge past 6 billion shares for the day.

The beginning-of-the-year portfolio re-alignment exercise is helping the key index to sustain its near-term gains and, in the process, improve market sentiments as well and allowing it to pass levels that have been formidable over the past few months.

As a result, the market’s undertone looks healthier and could encourage further near-term buying interest, particularly with the technical indicators still suggesting further near-term upsides.

Nevertheless, with the upsides not accompanied by a significant improvement in corporate fundamentals, the upsides could be milder as some bouts of profit taking could emerge ahead of the weekend.

As such, the 1,480 level is likely to be a formidable level for the key index to clear over the near term even as the immediate market outlook has improved. Above this level, the other resistance is at 1,484 points while the supports are at 1,470 and 1,466 points respectively.

Malacca Securities Research

The FBM KLCI had a great start for 2024 by managing to surpass the stiff resistance earlier on at 1,465 as buying interest emerged on the utilities heavyweights with 70% of the index members having closed higher.

Meanwhile, the US stock markets ended lower for another session as the 10-year US Treasury yield inched up towards 4% which prompted traders to avoid growth stocks, specifically the technology sector.

On the economic data, the ADP non-farm report showed an increase in job activity while unemployment claims were less-than-expected, suggesting persistent labour market strength.

Closer to home, we expect the buying momentum to sustain on the local front after the breakout recently on the FBM KLCI.

On the commodity market, Brent crude price notched lower after a big jump in US refined product inventories.

The FBM KLCI ended higher breaking out higher than the previous day. The technical readings on the key index were positive with the MACD Histogram extending the first positive bar while the RSI surged above the 60 level.

The resistance is envisaged around 1,470-1,480 while the support is set at 1,440-1,450. – Jan 5, 2024

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