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 equities retreated yesterday as market sentiments were affected by the overnight Wall Street weakness that resulted in the return of bargain hunting and erased some of the gains a day earlier.

However, the key index managed to recoup most of its intraday losses to end the day with only minute losses. The broader market, however, bucked the weakness trend to close with minor gains and helping total gainers to stay ahead of losers for the day.

The FBM KLCI is poised to end the week on a firmer note, riding in tandem with the gains in key global indices overnight as the banking crisis continues to ebb and on the US Federal Reserve potentially ending its interest rate upcycle soon.

This should provide some measure of confidence to the market and allow the FBM KLCI to fortify its position and potentially build up a base around the psychological 1,400 level albeit there are still few domestic leads and fresh corporate developments to entice more market players back into the market.

Nevertheless, the upsides will be welcomed to break the dour trend with the resistances pegged at 1,417 level, followed by the 1,420 level. The supports, on the other hand, are at 1,407 and the psychological 1,400 level.

Malacca Securities Research

The FBM KLCI saw marginal losses amidst mixed regional markets, stemming from selling pressure in most of the banking heavyweights.

In anticipation that rate hiking campaign may be nearing an end, coupled with the US Treasury Secretary Janet Yellen’s reassurance on the safety of Americans’ deposits, the local bourse and regional markets may rise in tandem with Wall Street’s movements.

Investors, however, may continue to monitor the development of the banking sector in the US as uncertainties remain in place.

Commodities-wise, Brent crude traded above US$75/barrel while crude palm oil (CPO) price hovered above RM3,500/metric tonne. Gold price inched higher from US$1,990/ounce.

The FBM KLCI booked mild decline after paring most of its intraday losses. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI continued to hover below 50.

Investors should monitor support along 1,370-1,380 and resistance at 1,420-1,440. – March 24, 2023

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