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 key index was mostly range-bound yesterday albeit closing at its intra-day low and in the negative territory on an end of day profit taking.

For most part of the day, however, the FBM KLCI was in the positive territory with the broader market shares having mounted a rebound to end the day with minor gains even as there were few market leads.

Consequently, market breadth was also in the positive territory with traded volumes picking up slightly.

With the Chinese New Year break ahead, market conditions are likely to stay indifferent for the most part as market players continue to wind down their activities.

As a result, the key index is likely to remain in a range-bound trend in the day ahead. Domestic leads will continue to be few and far between with overseas leads also in short supply that would leave the key index in a directionless mode.

With thinning buying interest, selling pressure would also be benign for the time being.

Under the prevailing environment, the key index is likely to trend close to the 1,510 level for now with the supports pegged at 1,508-1,510 levels while the 1,500 level will serve as the major support. The hurdles, meanwhile, are at the 1,520 and 1,526 levels.

Malacca Securities Research

The FBM KLCI closed flat after traded positively towards an intraday high position around the 1,521 level led by selling pressure in Genting Bhd.

Meanwhile, the US stock markets surged for another session as the S&P500 hit the 5,000-point milestone while unemployment claims came in slightly below expectations.

We believe the market is focusing on the solid earnings season which boosted the overall sentiment recently while offsetting a delay in the expected interest rate cuts by the US Federal Reserve.

Given this scenario, Wall Street may be supported in the elevated environment at least for the near term.

On the commodity markets, Brent crude price traded firmly above US$80/barrel amid signs of ongoing tension in the Middle East as Israel rejected a cease-fire offer from Hamas.

The FBM KLCI ended flat and still hovering within the consolidation phase. The technical readings on the key index were mixed with the MACD Histogram extended a less negative bar while the RSI maintains above the 50 level.

The resistance is envisaged around 1,520-1,530 while the support is set at 1,490-1,480. – Feb 9, 2024

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