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 retreat in line with most regional indices amid the lack of leads and buying interest despite Bank Negara Malaysia (BNM) leaving interest rates unchanged.

On the key index, plantation stocks led the losers but in the broader market glove makers saw some renewed buying interest. Still, market breadth remained negative for the day as most stocks were also lower on continuing mild profit taking activities.

The recent market pull-back has resulted in the key index retesting the psychological 1,450 level with the continuing global equity market uncertainties to leave sentiments frayed again.

As a result, there remains substantial downward pressure on the key index constituents with the 1,450 level likely to give way due to the continuing challenging market environment.

There could also be further foreign selling on Malaysian equities after the central bank left interest rates unchanged where these funds could be looking for higher yielding instruments or markets.

With the key index tipped to end the week on a subdued note, the 1,445 level has become the immediate support, followed by the 1,441 level. On the flipside, the hurdles are at the 1,450-1,452 levels and at 1,455 points.

Malacca Securities Research

The FBM KLCI declined further into the negative territory as BNM’s decision to maintain the overnight policy rate (OPR) was within expectation while the focus was shifted towards the concerns of bigger rate hikes in the US and weakness in the regional markets. The five-day foreign net selling stood at RM427.3 mil.

Global sentiment shall remain on the edge while awaiting key payroll reports from the US later today. Given the negative sentiment abroad, we believe the local stock market may trade cautiously amid intensifying global risk.

Commodities-wise, Brent crude has declined nearer to US$81/barrel while crude palm oil (CPO) price is still hovering above RM4,200/metric tonne.

The FBM KLCI ended on a downbeat note below its immediate support at 1,450. Technical indicators remained mixed given the MACD Histogram is showing a rounding top formation while the RSI is hovering below 50.

The next support is located at 1,430-1,440 while the resistance is pegged along 1,460-1,470. – March 10, 2023

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