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 recovered yesterday but the gains were benign as the key index just managed to end a tad above the 1,610 level to snap a three-day losing streak.

For the most part, conditions on the key index were subdued due to few available market pointers after the US Federal Reserve left interest rates unchanged.

Nevertheless, the lower liners made a stronger push that helped market breadth return to the positive side although traded volumes contracted by nearly a quarter to just below 6 billion shares for the day.

We see little change to the near-term market direction due to the lack of convincing impetuses and this is likely to keep the key index within a range-bound trend for the time being.

There remains a dearth of both domestic and foreign leads to encourage further buying among the key index constituents and with valuations relatively fair, the upside potentials are also limited.

At the same time, selling pressure remains light which could also help to sustain the key index above the psychological level of 1,600 points.

Under the prevailing environment, we continue to think that the key index will linger within the 1,600 and 1,620 levels for the time being. The is an interim support at the 1,605 level while there is a resistance at 1,615 points.

Malacca Securities Research

After three days of mild pullback, the FBM KLCI rebounded marginally to close above the 1,610 level while both the FBM70 and FBM Small Cap charged towards all-time high.

Meanwhile, the PPI (purchase price index) and core PPI data came in cooler-than-expectation – similar with the CPI (consumer price index) trend earlier – thus enabling the overall US major indices like Nasdaq and S&P500 to climb 0.34% and 0.25% higher respectively but the Dow Jones slid 0.17%.

On the commodity markets, Brent crude is ranging around the US$81-US$84/barrel zone while gold price has formed a bear flag formation following the US inflation CPI and PPI data. Meanwhile, CPO (crude palm oil) price continues to stay within a tight range between RM3,900-RM4,000/metric tonne.

The FBM KLCI index hovers around the 1,610 level. The technical readings on the key index were mixed with the MACD Histogram forming a slight negative bar while the RSI maintains above 50.

The resistance is envisaged around 1,625-1,630 while the support is set at 1,590-1,595. – June 14, 2024

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