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

There were more selling on Bursa Malaysia with the FBM KLCI extending its losses in tandem with the regional weakness following the US Federal Reserve’s lifting of interest rates and the prognosis of more hikes ahead.

This resulted in most key index stocks veering to the downside as market sentiments stayed cautious.

The lower liners and broader market shares, however, fared better with technology stocks bucking the downtrend even as losers were still ahead of gainers for the day.

The mostly cautious undertone will continue to dominate sentiments over the near term but with the FBM KLCI already deemed oversold following its recent downtrend streak, the selling could be abating with a rebound on the cards.

Although there are still few signs of an impending rebound as yet due to the prevailing uncertain market direction, there could be mild bouts of bargain hunting emerging that would help to reduce the selling pressure.

This could see the key index finding near-term support around the 1,430 level but if the selling persists, the other support is at the 1,420 level.

There is a minor resistance at the 1,440 level with the other hurdles located at the 1,448-1,450 levels and at 1,460 points respectively.

Malacca Securities Research

The FBM KLCI tumbled on the back of weaker sentiment which caused a sell-down globally triggered by the ongoing hawkish tone by the Fed.

As investors continued to price in more aggressive interest rate hike going forward, we believe the local bourse is likely to stay cautious and remain on a downward bias.

Meanwhile, investors may be on the watch out for Malaysia’s inflation rate to gauge the upcoming OPR (overnight policy rate) outlook by central bank Bank Negara Malaysia (BNM).

Commodities-wise, Brent crude price is likely to range around US$90/barrel over the near term while crude palm oil (CPO) price hovered below RM3,800/metric tonne.

The FBM KLCI extended its losses for the third straight session as the key index remained in a bearish undertone. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI hovered slightly above the oversold 30 region.

Resistance is set along 1,465-1,485 while the support is pegged around 1,410-1,430. – Sept 23, 2022

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