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 a bout of profit taking, the FBM KLCI regained traction in the afternoon session to extend its positive close for a third consecutive day.

The key index also ended at its day high amid the mild window dressing activities ahead of the end of the quarter. Similarly, many broader market shares rose but their upsides were more modest.

Nevertheless, market breadth remained positive while traded volumes were little changed from a day earlier.

We see the FBM KLCI continuing to gain ground amid the on-going window dressing activities that could help to trim the key index’s YTD (year-to-date) losses.

The upsides, however, could still be mild due to the mostly tepid buying interest with the bargain hunting activity just being selective as a result.

As it is, there is still apprehension over the FBM KLCI’s direction. While it has regained some traction to climb back above the psychological 1,400 level, there are few impetuses to entice more fresh buying interest.

Consequently, the FBM KLCI is likely to ride on the prevailing positive global equity market undertone to make further small gains over the near term with the immediate target set at 1,432 points which is also to cover the gap down formation.

Thereafter, the hurdle is at 1,443 points while the supports are at 1,420 points and at 1,417 points.

Malacca Securities Research

The FBM KLCI notched a three-day winning streak, taking cue from the positive environment across regional markets.

On the global front, stocks were on track to book further gains amid the quarter-end re-balancing period with easing fears over the global banking crisis.

We believe the local bourse will see further upside, supported by the China visit by our 10th Prime Minister which may anticipate further investments to emerge going forward.

Commodities-wise, Brent crude traded above US$79/barrel while crude palm oil (CPO) price hovered above RM3,750/metric tonne while gold price remained solid above US$1,980/ounce.

The FBM KLCI marked a three-day winning streak. Technical indicators remained positive with the MACD Histogram extended a positive bar while the RSI is approaching 50. Resistance is set along 1,445-1,450 while the support is located at 1,400-1,410. – March 31, 2023

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