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 lingering in the negative territory for most of the day, an end-of-day bargain hunting lifted the key index to a positive close last Friday which also allowed it to post its first weekly gain in a month.

Despite the positive close, market conditions were mixed with the healthcare sector retreating the most as market breadth remained negative for the day.

Many lower liners and broader market shares also closed in the red on profit taking but traded volumes remained well above the 3 billion shares mark.

Despite the positive close, we still see market conditions remaining tepid and this may see quick profit taking emerging at the start of the week.

As it is, last Friday’s upsides were unconvincing as the end-of-day buying was selective and the buying was relatively benign.

This could keep a lid on further upsides as there is also a lack of domestic catalysts to entice market players to stay invested, particularly among foreign funds that have remained net sellers.

Even so, we think that the downsides could be supported ahead of the probable mid-year window dressing activities that should see the key index lingering around the 1,380 level for the time being.

Before the 1,380 support, there is an immediate support at 1,377 points while the 1,390 level is the next hurdle, followed by the 1,396 level..

Malacca Securities Research

The FBM KLCI notched higher amid the FTSE rebalancing activities as well as optimism increased within the local and regional markets following a pause in US rate hike campaign.

While bargain hunting activities are likely to emerge, the local bourse may see upside to be capped for now with the investors are keeping an eye on Malaysia’s inflation reading due this week.

Meanwhile, we deem the decline on Wall Street as a healthy pullback following its recent gains.

Commodities-wise, Brent crude oil rose above US$76/barrel while crude palm oil (CPO) price jumped above RM3,600/metric tonne.

The FBM KLCI rebounded as the key index ended the week above its daily EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI hover below 50.

The resistance is set along 1,400-1,440 while the support is located around 1,370. – June 19, 2023

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