What to expect on Bursa Malaysia this Monday

BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:

Inter-Pacific Research

There were more upsides among Bursa Malaysia stocks as the key index ended last week with another positive performance amid renewed buying on selected heavyweights like YT Corp Bhd and YTL Power International Bhd.

This helped the FBM KLCI to remain firmly above the psychological 1,500 level even as the broader market turned mixed-to-lower as the FBM Small Cap and FBM ACE market indices were in the red albeit market breadth was positive.

However, traded volumes rose to nearly 5.0 billion shares for the day.

Near-term market conditions should stay largely positive due to the sustained interest among selected key index constituents.

However, further gains could become more measured after the relatively strong up move of late, leaving fewer compelling buying opportunities for these heavyweights to climb significantly higher.

Nevertheless, the slower ascend should be welcomed as the further gains could be more sustainable with the key index attempting to fortify its position above the 1,500 level convincingly.

The generally positive global equity conditions could also provide some impetus for the key index’s ascend as it adds calmness to the market undertone. For now, the hurdles are set at 1,512 and 1,520 points with the supports pegged at 1,500 points and 1,495 points respectively.

Malacca Securities Research

Still supported by the utilities heavyweights, the FBM KLCI charged higher for the fifth session, hovering above the 1,500 psychological level.

Meanwhile, the US stock markets ended the week on a mixed note as the S&P500 snapped its five-day winning streak after Intel’s softer revenue forecast.

This week, the market should be watching closely on several events such as (i) China manufacturing PMI (Purchasing Managers Index); (ii) the Federal Open Market Committee (FOMC) meeting; and (iii) jobs data in the US.

Overall, we still expect the buying support to sustain within the Malaysian stock markets. On the commodity markets, Brent crude continues to climb higher, currently hovering above the US$83/barrel mark amid potential China stimulus packages coupled with the on-going tension in the Middle East region.

The FBM KLCI ended higher for the fifth consecutive session. The technical readings on the key index were positive with the MACD Histogram extending the first positive bar while the RSI maintains above the 50 level.

The resistance is envisaged around 1,510-1,520 while the support is set at 1,480-1,470. – Jan 29, 2024

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