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 closed with minute losses last Friday, ending the week still at the 1,480 level. However, its sideway trend bucked the region’s mostly upside moves at the last day of the week.

While the key index dithered, many Bursa Malaysia sector indices rose with the transportation and logistics sector rising the most.

Even so, losing stocks were still ahead of gaining ones with traded volumes little changed from a day earlier.

With the key index holding steady, it should be able to capitalise on the Wall Street’s positivity last Friday that were buoyed by hopes that inflation may ease further in the coming months and that any recession could be mild.

The strong gains on US equities at the end of last week should permeate to Malaysia equities at the start of the week and allow the key index to head higher as market players look to capitalise on the calmer global market conditions to take up some fresh positions.

On the upside, the near-term targets are at 1,483 and 1,490 points respectively, followed by the psychological 1,500 level. The near-term supports, on the other hand, are at the 1,470-1,473 levels.

Malacca Securities Research

The FBM KLCI ended marginally lower amid the mixed regional markets sentiment, paring most of its intraday losses as bargain hunting activities emerged.

We believe the jump on Wall Street on Friday – coupled with the re-opening of China’s border – could spark a rally on the regional markets as well as on the local bourse.

We believe the market is more positive biased on the inflationary pressure as the US December 2022 payroll came in greater than expected, but the slowdown in wage growth could indicate that the US Federal Reserve’s battle against inflation may have an impact.

Commodities-wise, Brent crude is traded above US$78/barrel while crude palm oil (CPO) is priced above RM4,000/metric tonne.

The FBM KLCI booked marginal losses as the key index closed slightly above its daily EMA9 level. The technical indicators turned mixed as the MACD Histogram crossed slightly below zero while the RSI is hovering above 50.

Support is pegged along 1,450-1,460 while the resistance is set at 1,500-1,510. – Jan 9, 2023

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