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

The FBM KLCI ended the 1Q 2024 on a firmer note albeit closing the day off its intraday high last Friday.

The gains were in tandem with the upbeat regional market performance as they also ended 1Q 2024 on a positive note.

Consequently, the key index rose 5.6% for the quarter, emerging as one of the ASEAN region’s outperforming indices.

Similarly, the lower liners on Bursa Malaysia rebounded to end its downward streak and this helped market breadth to turn positive.

The key index has performed credibly to emerge as an outperformer in 1Q 2024 but further upsides have become more difficult to come by as there are fewer compelling buying opportunities.

As it is, market players are awaiting for more confirmation that Bursa Malaysia stocks have turned the corner and a sustainable earnings performance is in store to support further market upsides.

Therefore, the key index is very much in a holding pattern for now with the key index to still linger within the 1,530 and 1,550 levels until more catalyst emerges.

Although the buying is still tentative, there is also little selling pressure which should allow the key index to preserve most of its YTD (year-to-date) gains with the 1,530 to serve as a major support.

Below that, the supports are at 1,528 and 1,520 points respectively. The hurdles, on the other hand, are at 1,536 points and 1,540 points respectively.

Malacca Securities Research

The FBM KLCI fell on Friday but logged in 5.6% gains for the quarter while the FBM Small Cap rose 5.77% for the same period.

We believe the overall sentiment is turning more positively heading into 2Q 2024 with the domestic catalysts such as stable political environment, masterplans being executed as well as firmer commodities prices.

Meanwhile, we expect with the core PCE (personal consumption expenditures) numbers in the US coming in within expectations, the US Federal Reserve will likely remain dovish with three interest rate cuts over 2024.

On the commodity markets, Brent crude traded nearer towards US$87/barrel amid on-going geopolitical tension in the Middle East and extension of production cuts from OPEC+. Besides, gold price continues to extend its upward move above US$2,230/oz.

The FBM KLCI index ended higher closing around the 1,535 level. The technical readings on the key index were negative with the MACD Histogram extending a negative bar while the RSI is hovering below 50.

The resistance is envisaged around 1,550-1,555 while the support is set at 1,515-1,520. – April 1, 2024

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