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

The FBM KLCI continues to lose ground and ended yesterday a shade below the psychological 1,450 level despite recouping some of its intraday losses.

The continuing pullback was in response to the weaker global equity market performance on lingering inflationary concerns.

However, the broader market mounted a recovery from their recent consolidation spell as mild fresh buying emerged that also helped both market breadth and traded volumes to turn positive yesterday.

Despite the recent pullback with the key index resting at the psychological 1,450 level, there are still no signs of a rebound from the on-going market consolidation as yet.

As such, the level is still at risk of being breached that could also see the FBM KLCI ending the week on a cautious note.

As it is, fresh buying interest on the index heavyweights is still anaemic as there are still few noteworthy leads and this could still cause the key index to end its range-bound trend between the 1,450 and 1,463 level.

However, the rebound in many key global indices overnight may still provide some impetus for the key index to mount a recovery and to not only recapture the 1,450 level but to also allow it to tip back into the range-bound trend.

Below the 1,450 level, the other support is at 1,443 points while there is an interim resistance at the 1,453 level.

Malacca Securities Research

The FBM KLCI closed lower yesterday, bucking most of the regional indices. Meanwhile, Wall Street ended the overnight trading on a positive note with the August core PPI (producer price index) data coming in within expectations.

Hence, traders could be shrugging off the concerns that the US Federal Reserve will increase the interest rate at least for the near future.

Do note that the next Federal Open Market Committee (FOMC) meeting will be taking place on Sept 19-20 (next week).

Meanwhile, the listing of Softbank’s Arm Holdings has lifted the overall sentiment on the technology sector.

Given the removal of recent uncertainty in the markets, we expect buying interest to spill over to stocks on Bursa Malaysia.

Commodities-wise, Brent crude has soared above the US$93/barrel level while crude palm oil (CPO) prices rebounded to close near the RM3,800/metric tonne level.

The FBM KLCI ended marginally below the 1,450 psychological level. However, technical readings on the key index were mixed with the MACD Histogram forming a rounding bottom formation while the RSI has crossed below 50.

The resistance is located around 1,465-1,470 while the support is set around 1,430-1,440. – Sept 15, 2023

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