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

Bursa Malaysia stocks maintained their ascend on Wednesday as it closed at its highest level since August 2022 amid sustained buying on index heavyweights amid continuous recovery from the recent pull-back.

Conditions in the broader market were also positive with the FBM ACE and FBM Small Cap indices also on the mend.

Consequently, market breadth stayed positive with gainers nearly twice the number of losers. However, volumes thinned ahead of the yesterday’s (Jan 25) Thaipusam holiday.

Conditions on Bursa Malaysia appears to be sanguine which could allow for the near-term outlook to stay positive heading into the weekend.

The better-than-expected US economic undertone could help to improve sentiments further as it trims the recession odds in 2024, hence bolstering Malaysia’s export performance in the months ahead.

The positivity could help the key index to sustain its upward trend as it looks to fortify its position above the psychological 1,500 level after a long hiatus with the resistances now pegged at 1,512 and 1,519 points. In the interim, the 1,500 level will serve as the immediate support with the ensuing support pegged at the 1,495 level.

Malacca Securities Research

The FBM KLCI surged for the fourth session and once again crossed and closed above the 1,500 psychological level.

We believe the overall sentiment on the local front may stay bullish in tandem with the Hang Seng Index spiking above the 16,000 level following the news where China ramps up stimulus and the PBOC (People’s Bank of China) announces policy easing measures.

Also, the US stock markets continued its bullish tone following the release of better-than-expected GDP data. We believe the market will be focusing on corporate earnings and next week’s FOMC (Federal Open Market Committee) meeting.

On the commodity markets, Brent cruder headed above the US$80/barrel mark as EIA indicated that the US inventories were declining.

The FBM KLCI ended higher for the fourth consecutive session. The technical readings on the key index were positive with the MACD Histogram forming a rounding bottom formation while the RSI maintains above the 50 level.

The resistance is envisaged around 1,510-1,520 while he support is set at 1,4-1,470. – Jan 26, 2024

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