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 shed all of its intraday gains to end yesterday on an indifferent note after a late selling of selective index linked stocks.

Much of the weakness was due to the continuing disposal by foreign funds which have turned big sellers after they were net buyers in the preceding quarter.

In the broader market, however, conditions were firmer that led to renewed bargain hunting activities which paved way for gainers to move ahead of losing stocks for the day.

The overall market conditions are still cautious with concerns over the slower global economic outlook dominating sentiments which could leave the FBM KLCI to drift further over the near-term.

Leads from both local and overseas sources are still in short supply and this will also keep the FBM KLCI unexciting for longer.

At the same time, foreign institutions are trimming their shareholdings that would continue to see the key index in a state of flux.

Under the prevailing environment, the key index is likely to end the week on an indifferent note as market players will remain selective in their market moves until there are further signs of stability.

The 1,420 level is still the immediate resistance, followed by the 1,424-1,428 levels. The supports, meanwhile, also remain at the 1,410-1,412 levels and at 1,407 points respectively.

Malacca Securities Research

The FBM KLCI turned flat as the profit taking activities emerged in the first session of trading.

Wall Street continues to trade lower overnight, affected by the US Treasury yield environment while the market could be looking for possible clues in the upcoming Friday’s monthly jobs report to understand the US Federal Reserve’s interest rate direction going forward.

On the local front, we anticipate that the traders may focus on domestic catalysts such as the National Energy Transition Roadmap (NETR) and New Industrial Master Plan (NIMP) for trading opportunities.

Commodities-wise, Brent crude extended its sell-down to close below the US$85/barrel level due to weak demand for gasoline in the US even as production dropped while crude palm oil (CPO) prices headed lower towards RM3,600/metric tonne level.

The FBM KLCI ended flat, falling into the support zone of 1,400-1,415. Despite the MACD Histogram extending another negative bar, the RSI fell below 30 which could mean the index is oversold and may be due for a rebound in the near term.

The resistance is envisaged around 1,440-1,450 while the support is located around 1,400-1,415. – Oct 6, 2023

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