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 managed to eke-out a marginal gain at the end of Friday’s session despite lingering in the negative territory for most of the day.

The end-of-day buying support was on selected index-linked tech and utilities stocks that allowed the key index to end in the green in an otherwise listless session.

Overall market conditions, meanwhile, were generally mixed on moderate volumes with market breadth marginally in the negative territory as many broader market shares were still in the red.

The FBM KLCI could sustain its mild upsides over the near term in tune with the upsides in global indices that were buoyed by the prospects of a resolution in the US debt ceiling limits. This could spur mild bargain hunting activities on some of the recently beaten down stocks in the recent market pullback.

Nevertheless, there remains tentativeness in the market’s upsides as the ongoing corporate results reporting season has failed to encourage more fresh buying interest and most market players could still remain on the sidelines.

Consequently, we see the potential upsides remaining mild with the FBM KLCI just targeting the 1,408-1,410 levels for the time being. The other hurdle is at 1,415 points while the main support is still at the psychological 1,400 level, followed by 1,397 points.

Malacca Securities Research

The FBM KLCI booked marginal gains after enduring a volatile session following the softer CPI (consumer price index) data for Malaysia in April 2023.

In light of the brighter outlook of US debt-ceiling deal, bargain hunting activities may emerge on the local bourse, tracking the rallies on Wall Street last Friday.

Investors may also monitor Malaysia’s and the US S&P Global Manufacturing PMI as well as US unemployment rate this week.

Commodities-wise, Brent crude traded above US$76/barrel while crude palm oil (CPO) price climbed above RM3,500/metric tonne.

The FBM KLCI finished marginally higher as the key index continued to stay below its daily EMA9 and EMA20. Technical indicators however, remained negative as the MACD Histogram extended a negative bar while the RSI hovered below 50.

Next support is envisaged along 1,370-1,390 while the resistance is pegged along 1,440-1,460. – May 29, 2023

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