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 rose yesterday but it lagged the regionals markets’ firmer upsides as the buying interest remained mostly lacklustre.

As a result, the key index only managed to rise marginally and trended within a thin band for most of the day.

Technology stocks, however, were buoyant, emerging as the biggest mover for the day where market breadth turned negative on a relatively mixed broader market condition. The day’s volumes were little changed from the previous day.

We see market conditions remaining mildly positive for the day after the US’ inflation rate cooled, hence likely to trim the odds of further significant interest rate hikes ahead.

The firmer close on Wall Street is set to also permeate to stocks on Bursa Malaysia and to allow them to end the week on a positive note.

Still, the upsides may be hindered by the continuing lack of buying interest among the index heavyweights that could again curtail the key index’s upsides and leave it range-bound for longer.

On the upside, the 1,490 level remains the immediate hurdle, followed by the 1,495 level with the psychological 1,500 level still a formidable level to breach. The supports, meanwhile, are at the 1,480-1,485 levels and at 1,470 points respectively.

Malacca Securities Research

The FBM KLCI eked out marginal gains as investors traded cautiously prior to the US inflation data.

Following a cooling inflation print in the US, investors may anticipate a less aggressive tone from the US Federal Reserve moving forward.

The optimism on Wall Street overnight coupled with the higher Brent crude price around US$84/barrel could lift the sentiment on our local bourse.

On a side note, the comment from Deputy Prime Minister-cum-Plantation and Commodities Minister Datuk Seri Ahmad Zahid Hamidi on the potential halt of palm oil export to European Union (EU) may trigger higher volatility in plantation counters. Crude palm oil (CPO) price has been consolidating around RM3,900/metric tonne.

The FBM KLCI traded higher in despite failing to close above SMA200. Technical indicators were positive as the MACD Histogram cross above zero line while the RSI hovered above 50.

Resistance is located at 1,500-1,510 while support is envisaged along 1,450-1,460. – Jan 13, 2023

Subscribe and get top news delivered to your Inbox everyday for FREE