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

Market conditions were mixed on Wednesday but the FBM KLCI managed to eke out minor gains to turn positive as it mirrored the performance of global and regional equities to edge higher.

Much of the key index’s upside was from the bargain hunting on selected banking and utilities stocks.

The broader market was also mostly positive that allowed gainers to be marginally ahead of losing stocks for the day. Traded volumes were also some 10% higher.

After posting a mild rebound on Wednesday, the FBM KLCI could be angling for more upsides to end 1H 2023 on a firmer note even as most of the window dressing activities have ended.

Its efforts could be boosted by the continuing gains in many global indices over the past few sessions that may help to cast aside the relative dearth of positive leads, both from domestic and foreign sources.

However, we think that the potential upsides could remain mild due to the low market following as most market players are still on a guarded mode.

As such, we think the key index may only retest the 1,390 level in the near term with the ensuing hurdle set at 1,395 points. There is a minor support at the 1,385 level which is followed by the 1,380 level.

Malacca Securities Research

The FBM KLCI closed marginally higher, snapping its three-session losing streak amidst improved sentiment across the regional markets.

We believe the local bourse is poised for further rebound but gains may be capped as investors cautiously monitor the upcoming personal consumer expenditures price index in the US to gauge the aggressiveness of next interest rate hike by the US Federal Reserve.

Commodities-wise, Brent crude rebounded, trading above US$74/barrel while crude palm oil (CPO) price jumped above RM3,750/metric tonne.

The FBM KLCI booked marginal gains after paring earlier gains as the key index continued to stay below its daily EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI is hovered below 50.

Resistance is envisaged along 1,400-1,440 while the support is pegged around 1,370. – June 30, 2023

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