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 surrendered its intraday gains to end the day marginally lower on end-of-day profit taking on some of the key heavyweights albeit the broader market and lower liners remained mostly positive as they continue to recover from an oversold position.

Healthcare stocks were still on the uptrend following a prolonged downtrend as with construction stocks on bargain hunting activities.

Traded volumes, however, moderated to its near-term averages but market breadth remained positive.

Market conditions could become more cautious in the day ahead as market players await for the unveiling of Budget 2023 as well as developments on the next general election.

At the same time, the cautiousness could also stem from the pullback of global indices overnight that will also make buying interest becoming more tentative. Moreover, profit taking may also emerge ahead of the upcoming long weekend break.

Therefore, the push-and-pull factors could result in the key index trending within a narrow range for the time being as it looks to stay close to the 1,420 level until there is more clarity on its direction.

In the interim, the supports are at 1,413 and 1,410 points while the resistances are at 1,424 and 1,430 points respectively.

Malacca Securities Research

The FBM KLCI booked marginal losses as investors took profit in the final hour.

Meanwhile, the Wall Street has reversed its course after a few days of rebound. Given the sell-down on Wall Street, we expect the market to remain volatile in the global scene while investors on the local front may trade cautiously ahead of the tabling of Budget 2023.

Commodities-wise, Brent crude price climbed above US$94/barrel as investors mulled over OPEC+’s decision to cut production while crude palm oil (CPO) price hovered above RM3,750/metric tonne.

The FBM KLCI ended marginally lower after wiping out all its intraday gains on final-hour sell-down.

Technical indicators remained mixed as the MACD Histogram has extended a positive bar while the RSI hovered below 50. Resistance is envisaged along 1,430-1,450 while the support is located at 1,385-1,400. – Oct 7, 2022

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