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

Despite trending higher for most of the day, the key index ended Wednesday lower on last-minute profit taking on some index heavyweights, thus nullifying the support on banking and plantation stocks.

Conditions in the broader market were mixed amid the bouts of profit taking but technology stocks still emerged as the biggest winners for the day.

The mixed conditions also saw gainers and losers hitting parity at 499 stocks a side. However, traded volumes shot up nearly 22% to 4.9 billion shares.

We think the FBM KLCI could stay range-bound between the 1,440 and 1,450 levels for the time being as it continues to build up a base around the levels.

With the corporate results reporting season coming to an end, market players would be scouring for other leads but after the weakness on Wall Street overnight, conditions could become more subdued heading into the weekend.

As a result, there could be more selling and profit taking that could leave the key index to drift lower at the start of the new month.

Market conditions could also become choppier due to the increased selling that could send the key index back to the immediate supports at around the 1,445-1,447 levels. The ensuing support is at the 1,440 level while the resistances are pegged at 1,455 points and the most recent high at the 1,462 level.

Malacca Securities Research

The FBM KLCI traded softer prior to the public holiday as profit taking activities emerged.

Meanwhile, Wall Street traded mixed as the heavy-technology-Nasdaq index gained momentum despite the core PCE (Personal Consumption Expenditures) ticked higher this month (but still within market’s expectations).

We believe traders will be monitoring for more clues from the August payroll that will be out later today. Should the payroll data come in below expectation, it will provide the US Federal Reserve reason to pause further interest rate hikes.

On the local front, we expect greater trading activities, supported by the news flow regarding the National Industrial Master Plan (NIMP).

Commodities-wise, Brent crude surged above US$86/barrel while crude palm oil (CPO0 prices marked higher above RM4,000/metric tonne.

Following the breakout last Tuesday, the FBM KLCI has taken a breather after hitting the intraday high of 1,463.

However, we think the momentum is still intact with the MACD Histogram recovering while the RSI is above 50. The resistance is envisaged around 1,460-1,465 while support is set around 1,430-1,440. – Sept 1, 2023

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