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

There was no reprieve as the key index remained on the slide with the sustained selling leaving it at the 1,460-support level at the end of last week.

The pullback was in spite of the country’s 3Q 2023 GDP (gross domestic product) meeting expectations as profit taking was still unfolding from the mid-week spike up.

Selling activity was also prevalent among the lower liners that kept market breadth in the negative territory. Traded volumes also stayed above average at nearly 3.3 billion shares albeit this was lower than a day earlier.

After successive days of weakness, we think the key index could attempt to find some solace at the start of the week.

This could allow the FBM KLCI to find support around the 1,460 level and to halt its downward streak.

Still, any upsides appear to be mild for now due to the lack of catalysts that could leave it to drift further even as it attempts to linger close to its nine-month high.

The recently announced GDP performance is unlikely to provide much impetus as the outlook is set to stay largely indifferent into the start of 2024.

Key global equity indices are also marking time and generating few fresh buying opportunities.

As a result, the key index could be on a drifting trend for longer and if the 1,460 level gives way, the supports are lowered to 1,455 points and the psychological 1,450 level. The resistances, on the other hand, are at 1,462 points and the most recent high of 1,467 points respectively. – Nov 20, 2023

Malacca Securities Research

For the week, the FBM KLCI closed higher by 1.07% amid inflow of foreign funds coupled with the spill-over buying support from Wall Street.

The softer-than-expected inflation data has boosted the US stock markets for the third week straight.

For this week, we believe traders will be focusing on the FOMC (Federal Open Market Committee) meeting minutes to find more clues on the interest rate direction.

Other data such as unemployment claims as well as manufacturing and services on Friday will be monitored.

For the local market, traders may trade cautiously amid the on-going corporate reporting season.

On the commodity markets, Brent crude prices rebounded above US$80/barrel as OPEC+ may consider additional steps to support prices by cutting production.

The FBM KLCI ended lower for the second session. The technical readings on the key index are mixed with the MACD Histogram hovering near the zero level while the RSI maintained above 50.

The resistance is pegged around 1,470-1,480 while the support is at 1,440-1,455. – Nov 20, 2023

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