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 mounted a rebound on Friday, buoyed by the above expectation GDP (gross domestic product) performance for 2022 that also allowed the key index to extricate from its support level and to climb back above the 1,470 level.

Conditions in the broader market and the lower liners, however, were mixed with market breadth remaining negative on continuing profit taking on many of these stocks after a strong ruup in the past few weeks.

Volumes, meanwhile, climbed back above the 4 billion shares mark.

The key index could be angling for follow-through upsides at the start of the week as it attempts to break its near-term downbeat streak.

However, with the overall market conditions is still relatively unsettled, such attempts may still prove to be a challenge as interest in index heavyweights remain light.

As it is, market players are still waiting for further indications of firmer corporate earnings performances to determine their investment decision.

Nevertheless, lending support to the market would be the country’s still firm economic prognosis and ongoing corporate results reporting that could give some leeway to the FBM KLCI’s to extend its gains albeit this may be mild for the time being.

On the upside, the next target is at the 1,476-1,480 levels, followed by the 1,485 level. The supports, meanwhile, are at 1,470 and last week’s low of 1,463 points.

Malacca Securities Research

The FBM KLCI recovered from its three-session losses on bargain hunting activities, especially in the banking and energy heavyweights.

Global sentiment remained mixed as investors are likely to pay attention to the US inflation rate which will be released this week; this may determine direction of the interest rate going forward.

Meanwhile, the local bourse should focus on the earnings reporting season as well as the re-tabling of Budget 2023.

Commodities-wise, Brent crude oil price jumped above US$86/barrel on rising demand from China while crude palm oil (CPO) traded above RM3,900/metric tonne.

The FBM KLCI rebounded, snapping the three-session losing streak but staying below its daily EMA120. Technical indicators however, remained negative as the MACD Histogram extended a negative bar while the RSI is hovering below 50.

Support is set around 1,450-1,460 while the resistance is located along 1,500-1,510. – Feb 13, 2023

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