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 1Q 2023 on a weaker note as the window dressing activities evaporated and mild profit taking took hold.

Nevertheless, the losses were minute with the key index remaining above the 1,420 level at the close with market breadth still on the positive side as most of the lower liners and broader market shares ended the quarter on a firmer note.

Traded volumes were little changed from a day earlier.

With global equities still on a positive run, we see further upsides for stocks on Bursa Malaysia as they also mirror the performance of global equities.

However, the FBM KLCI’s upsides could still be mostly tentative as buying interest on the index heavyweights are still tepid, particularly from foreign funds as they continue to be net sellers of Malaysian equities year-to-date (YTD).

As a result, local institutions are providing some buying support that is keeping the key index above the psychological 1,400 level.

Meanwhile, the start of the week could see the key index stage a rebound from last Friday’s weakness but the upsides may still be measured with the key index potentially re-testing the recent intraday high of 1,425 points.

If the level is cleared, the next hurdle is at the 1,433 level which would allow the key index to cover the gap-down technical formation. The supports, on the other hand, are at 1,420 and 1,410 points respectively.

Malacca Securities Research

The FBM KLCI ended 1Q 2023 on a negative note as profit taking activities emerged after the noon trading break last Friday.

Nevertheless, we foresee a comeback on the local bourse following the further breakout on Wall Street overnight, coupled with an anticipation of a brighter outlook after Malaysia secured RM170 bil worth of investment commitments from China.

Sectors that will benefit from the investment are likely to hog the limelight.

Commodities-wise, Brent crude price hovered above US$79/barrel but with the surprise cut of 1.16 million barrels from OPEC+, Brent price might surge above US$85/barrel while crude palm oil (CPO) traded above RM3,750/metric tonne.

The FBM KLCI inched lower on Friday, snapping a three-session losing streak. Technical indicators however, remained positive as the MACD Histogram extended a positive bar while the RSI is climbing towards 50.

Resistance is pegged along 1,445-1,460 while the support is positioned at 1,370-1,380. – April 3, 2023

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