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 was little follow through buying interest among the FBM KLCI constituents that left it to drift again at the end of last week albeit the pullback was minor and the key index managed to remain above 1,450 level to end the week.

For the most part, however, the buying interest was insipid due to the lack of leads although the lower liners and broader market shares continue their recovery from their bout of oversold on light bargain hunting that helped market breadth to turn positive for the day.

As it is, the FBM KLCI is still finding its footing after recent pull-back that has left it oversold.

Although the key index has managed to stay above the psychological 1,450 level, buying interest remains thin with most market players still on a wait-and-see stance amid the few compelling leads to entice fresh buying.

This is likely to leave the key index to drift and we see more of the sideway trading trend at the start of the week albeit there could still be some mild upsides following the positive performance on Wall Street last Friday.

On the upside, there will be hurdles at the 1,455-1,448 levels, followed by the 1,460 level. Thereafter, the resistance is at 1,465 points. The supports, on the other hand, are at 1,450 level, followed by the 1,445 level.

Malacca Securities Research

The FBM KLCI settled lower on Friday as profit-taking activities re-surfaced, bucking the positive performances across regional markets.

Global risk appetite improved, but still awaiting comments from the US Federal Reserve officials who will provide clues for the future rate hike directions during congressional testimony.

Nevertheless, the market has priced in the solid ISM manufacturing data which should contribute to at least a positive short term trading environment.

Meanwhile, investors may keep an eye on Bank Negara Malaysia’s (BNM) interest rate decision this week.

Commodities-wise, Brent crude climbed above the US$85/barrel mark while crude palm oil (CPO) price surged above RM4,350/metric tonne.

The FBM KLCI reversed gains from the previous session but remained well supported above the 1,450 level. Technical indicators, however, remained negative as the MACD Histogram extended a negative bar while the RSI is hovering below 50.

Support is set along 1,430-1,440 while the resistance is at 1,470-1,480. – March 6, 2023

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