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

Malaysian stocks lost ground last Friday as profit taking activities emerged that left the key index below the psychological 1,450 level at the close.

For most of the session, the index heavyweights were directionless and eventually lost ground in the afternoon session.

The lower liners and broader market shares also saw lacklustre trading, resulting in losers overtaking gainers for the day. However, traded volumes stayed firm, little changed for a day earlier.

With global equities making strong headway last Friday, we see the positivity returning to Bursa Malaysia at the start of the week, buoyed by hopes that the Federal Reserve could raise interest rates at a more moderate pace in the upcoming week.

This should provide the impetus for the Bursa heavyweights to mount a quick rebound and to possibly climb back above the 1,450 level again.

At the same time, foreign buyers have returned of late; this could renew the buying support for the FBM KLCI at the start of the week.

Above the 1,450 level, the hurdles are at 1,456 points and 1,460 points respectively. On the other hand, the near-term supports are pegged at 1,441 points and 1,435 points respectively.

Malacca Securities Research

The FBM KLCI slipped on Friday as profit-taking activities within selected banking and energy heavyweights on the key index pulled the index lower.

While Wall Street staged a massive comeback on Friday, investors may continue to monitor a series of event this week including the interest rate decision by the US Feds and Bank of England (BOE) to gauge economic outlook and market directions going forward.

On the local front, we believe that investors’ focus may shift to GE15 (15th General Election) theme at least for the near term.

Commodities-wise, Brent crude traded above US$95/barrel while crude palm oil (CPO) price tumbled below RM4,000/metric tonne.

The FBM KLCI extended losses and closed around its daily EMA60 level. Technical indicators, however, remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.

Resistance is set along 1,465-1,485 while the support is located at 1,400-1,420. – Oct 31, 2022

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