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 moved lower at the end of last week, shedding some five points to end the week at the 1,455 support level.

Conditions were largely insipid on Friday, mirroring the cautious sentiments among its regional peers on renewed concerns over the global economic direction.

Technology stocks were the main losers but many other lower liners and broader market shares also succumbed to profit taking with selling activities also leaving market breadth decidedly negative.

We continue to see the key index on a range-bound trend between the 1,450-1,463 levels, unable to find a breakthrough out of the upper level of the band due to the lack of sustainable leads to provide the impetus.

At the same time, the selling pressure is also relatively benign as there appears to be some mild buying support to help preserve most of the FBM KLCI’s gains since the start of 2H 2023.

With the key index in a holding pattern, the base building pattern would also be looking to continue and fortify its position around the 1,450 psychological level.

In the interim, market players could also be on the look-out for more market developments that could chart the key index’s next direction.

The key index is at the 1,455 support level but if it breaks, the ensuing supports are lowered to 1,450 and 1,443 points respectively. The resistances, meanwhile, are at the 1,460-1,463 levels, followed by the 1,472 level.

Malacca Securities Research

The FBM KLCI ended lower last week prior to the by-election over the weekend, coupled with weaker regional stock markets performance.

Since both the Johor by-elections have concluded, we expect the market to perform better in the near term.

Also, we expect the positive rebound on Wall Street may spill over to stocks on the local front.

However, the fluid developments in the political scene may limit the upside potential of the stock markets as we believe traders may turn their attention to value stocks during period of uncertainties.

Commodities-wise, Brent crude traded slightly above the US$90/barrel level while crude palm oil (CPO) prices were mildly lower but formed a hammer candle above the RM3,800/metric tonne level.

The FBM KLCI traded lower and formed a bearish candlestick. Meanwhile, the technical readings on the key index were mixed with the MACD Histogram forming a negative bar but the RSI is still hovering above 50.

The resistance is located around 1,465-1,470 while the support is set around 1,430-1,440. – Sept 11, 2023

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