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

Malaysian stocks continue to head south, extending its downward streak to three sessions as the buying interest remains frayed.

Banking stocks were the main contributors to the FBM KLCI’s weakness yesterday along with many Bursa Malaysia sector indices as foreign institutions continue to trim their shareholding.

The insipid trend extended to the lower liners, resulting in losers still well ahead of gaining stocks for the day. Traded volumes also moderated and slipping below the 4 billion shares level.

With the FBM KLCI slipping below its key support levels, the near-term outlook is likely to stay unsettled with the downward streak possibly extended to the end of the week.

While market players will be on the look-out for the release of the country’s 4Q 2022 GDP (gross domestic product) for some near-term trading direction, sentiments are likely to remain insipid that could again leave the key index to drift further.

At the same time, the weak closing in key global indices overnight could further weigh on FBM KLCI stocks and is unlikely to provide much direction to stocks on Bursa Malaysia.

On the downside, the supports are now pegged at 1,460 points with the 1,457 points level to serve as the key support before the 1,450 level comes into play. The resistances, on the other hand, are at 1,470 points and 1,473 points respectively.

Malacca Securities Research

The FBM KLCI declined for the third straight session on the back of weakness in telecommunications and transportations & logistics heavyweights.

However, we believe the key index is poised for a mild rebound as investors may hunt for bargains prior to the reporting season although the upside might be capped amid the jittery global sentiment.

Meanwhile, investors will be watching Malaysia’s 4Q 2022 GDP data which will be released today. Commodities-wise, Brent crude price climbed above US$84/barrel while crude palm oil (CPO) price fell below RM3,850/metric tonne.

The FBM KLCI extended its losing streak for the third session as its daily EMA9 has crossed below the SMA200. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI is hovering below 50.

Support is monitored at 1,460, followed by 1,450 while the resistance is pegged along 1,525-1,540. – Feb 10, 2023

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