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 rose last Friday, recovering in tandem with the gains in many regional indices as market conditions were more settled from China’s moves to stimulate its economy.

However, the gains were minor with selected index linked stocks moving higher amid the sustained selling by foreign funds that capped the upsides.

The lower liners were mixed as profit taking emerged with market breadth also almost equal between the gainers and losers. Traded volumes dipped below 3.0 billion shares.

We see the FBM KLCI still attempting to find more footing around the 1,440 level after its relative indifferent trend over the past few sessions.

As it is, the market is devoid of positive leads amid the continuing geopolitical issues and weak global economic outlook that could leave the market to drift further.

However, the key index has performed credibly to trend within a tight range despite the ongoing market headwinds that have seen many other global indices enduring volatile performances.

There should be continuing mild bouts of buying support that will allow the key index to remain relatively steady within the 1,430 and 1,450 levels for the time being with the interim supports seen at 1,437 – the 200-day moving average while the other hurdle is at the 1,445 level.

By remaining at these levels would also allow the FBM KLCI to build up the much-needed base.

Malacca Securities Research

The FBM KLCI closed marginally higher on Friday in tandem with the regional sentiment. Meanwhile, Wall Street traded mixed with the technology stocks rebounding, leading to a positive close on NASDAQ.

This week, we will be having (i) China Manufacturing PMI (Purchasing Managers’ Index), (ii) ISM Manufacturing PMI, and (iii) jobs data. Hence, trading activities may turn slightly cautious in the US.

Also, another main event to watch out for will be the Federal Open Market Committee (FOMC) meeting that will be held from Oct 31-Nov 1.

Closer to home, we expect bargain hunting activities to extend on the FBM Small Cap as the FBM KLCI heads into the reporting season month.

Given the widening of geopolitical tension, we believe oil prices could remain elevated above US$86/barrel. Meanwhile, crude palm oil (CPO) prices turned higher last Friday by inching closer to RM3,800/metric tonne mark.

The FBM KLCI ended slightly higher, forming a flag formation. The technical readings on the key index are slightly positive with the MACD Histogram turning flat while the RSI maintains above 50.

The resistance is envisaged around 1,450-1,460 while the support is located around 1,420-1,430. – Oct 30, 2023

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