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 retreated steeper-than-expected yesterday as it ended below the psychological 1,550 level on continuing profit taking activities.

On the key index, it was YTL Power International Bhd and YTL Corp Bhd that led it lower despite the two companies reporting strong earnings.

Elsewhere, conditions were more sanguine with the lower liners registering gains that allowed market breadth to turn positive. Meanwhile, traded volumes were little changed from a day earlier.

Despite the steeper-than-expected pullback yesterday, the key index found support at the 1,545 level.

The retreat was also seen as healthy for the recent gains to be digested but there could be a quick rebound in the day ahead as stocks could ride on the gains of global indices overnight that should also permeate to the local equity market.

Technology-related stocks could be in focus due to the strong performance of Nvidia as market players continue to see firm prospects for stocks in this sector over the near-to-medium term.

Although market conditions remain toppish, the firmer market undertone could see the key index making another pass at the immediate hurdle at the 1,550 level to end the week. Thereafter, the hurdles are at the 1,555 and 1,563 levels while the supports are at 1,540 and 1,533 points respectively.

Malacca Securities Research

The FBM KLCI pulled back for the second session consecutively prior to release of YTL Group’s results.

Over in the US, Wall Street charged higher as the sentiment turned bullish after the strong set of results from Nvidia; the Dow Jones and S&P500 closed at record highs.

Meanwhile, the flash US manufacturing PMI (Producer Manufacturing Index) rose to a 17-month high of 51.5 (consensus: 50.5) while the S&P flash US services PMI dipped to a three-month low of 51.3 (consensus: 52.4); both in the expansion territory.

On the commodity market, Brent crude price is still holding above US$83/barrel amid ongoing conflicts in the Middle East, coupled with the US inventories rising less-than-expected.

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

The resistance is envisaged around 1,560-1,570 while the support is set at 1,520-1,530. – Feb 23, 2024

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