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

Once again, the FBM KLCI managed to recoup most of its intraday losses and ended Friday with marginal losses, buoyed by buying support towards the end of the day.

Profit taking activities were prevalent in the early parts of the day but the buying support from foreign funds narrowed the day’s losses.

The broader market also saw renewed buying interest that allowed market breadth to return to the positive side albeit traded volumes were little changed from Thursday (Aug 10).

We see market conditions remaining stable with the end of the politicking activities after the relatively stalemate state elections.

Attention could now switch back to the economic and corporate undertones with the ongoing results reporting season in focus. The central bank will also be unveiling the country’s 2Q 2023 GDP (gross domestic product) data at the end of the week with expectations of slower growth compared to the preceding quarter.

With the key index to hold mostly steady, we also see it remaining above the psychological 1,450 level for now albeit there could be some bouts of choppiness with lingering profit taking activities cancelling out some of the continuing participation from foreign funds.

Below the 1,450 level, the other supports are at 1,444 points and 1,437 points – the latter is the 200-day moving average line. The resistances, on the other hand, are at the 1,460-1,462 levels and at 1,470 points.

Malacca Securities Research

The FBM KLCI was left marginally in red as investors took a cautious stance ahead of the weekend state elections.

However, with the state election concluded with a “3-3” status quo outcome, we reckon that the FBM KLCI may stage a relief rebound.

The outcome is deemed positive to demonstrate the stability of Pakatan Harapan (PH)-Barisan Nasional (BN) pact government.

We expect the lower liners to see improved trading sentiment with investors to re-position ahead of the barrage of corporate earnings releases.

Still, gains are expected to remain choppy from the uncertainty surrounding the release of the US Federal Open Market Committee (FOMC) minutes meeting in mid-week.

Commodities wise, Brent crude stabled above US$86/barrel while crude palm oil (CPO) prices stayed put around RM3,700/metric tonne.

Once again, the FBM KLCI recovered most of its intraday losses to close marginally lower as the key index and formed another hammer candle.

Technical indicators were positive as the MACD Histogram extended another positive bar while the RSI is above 50. The immediate resistances are located along 1,480-1,500 while the support is pegged around 1,420-1,440. – Aug 14, 2023

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