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

After starting the day on the back foot, sustained window dressing helped to lift the FBM KLCI back into the positive territory as well as ending the session at its day high.

Banking, telco and plantation stocks were the main movers that allowed the key index to buck the mostly negative regional markets.

The lower liners and broader market also found some buying support with total gainers ahead of losing stocks for the day.

Trading volumes, meanwhile, were slightly lower than the previous day.

The uptrend could continue as the key index makes a fresh attempt at ending the year at the psychological 1,500 level.

Much of the upsides will be from window dressing activities as overall market conditions are still dulled by concerns over the potentially slower economic conditions in the year ahead as well as the availability of few noteworthy domestic leads.

The positive performance on Wall Street and Europe overnight could also provide some additional impetus for the FBM KLCI’s window dressing activities to sustain in the day ahead.

On the upside, there is an interim resistance at the 1,495 level – which is also the 200 MA – before the 1,500 level is retested. Further above, the resistances are at 1,512 and 1,516 points respectively.

The supports, meanwhile, are at the 1,480-1,483 levels, followed by the 1,476 level.

Malacca Securities Research

The FBM KLCI continues to trade positively, driven by the ongoing year-end window dressing activities in the banking and telco heavyweights.

Also, with the positive rebound on Wall Street possibly spilling over to the local front with trading activities to stay on an upbeat manner, the FBM KLCI should revisit the 1,500 level.

Traders will be focusing on the China’s borders re-opening catalyst and position themselves for the recovery theme trades.

Commodities-wise, Brent crude price settled flat along US$83/barrel while crude palm oil (CPO) price is hovering above the RM4,000/metric tonne.

The FBM KLCI closed above its daily EMA9 level with a breakout move above 1,480. Technical indicators as in the MACD Histogram has turned positive while the RSI is hovering above 50.

The resistance is located around 1,500-1,510 while support is envisaged around 1,460-1,470. – Dec 30, 2022

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