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 ended last Friday on a muted note as it extended its downtrend for the entire week amid the lack of buying interest on index-linked stocks, particularly telco stocks.

The key index also continued to buck the performance of regional indices to close in on the 1,440 support but there was a reprieve among the broader market shares as they rebounded to break their downward streak to aid market breadth turn positive. However, traded volumes were little changed from a day earlier.

With few impetuses coupled with the lack of fresh buying interest, the near-term market outlook is likely to remain morbid.

As it is, the key index is finding it difficult to regain traction with most market players preferring to stay on the sidelines and this could continue to see the FBM KLCI on a drifting mode for longer.

This also means that the key index will continue to decouple from the performances of key global stock indices and retain its insipid trend.

As a result, the 1,440 support remains under threat and window dressing activities could also be in the backburner for the time being. Below the 1,440 level, the supports are at 1,435 points and at the 200-day moving average line at 1,431 points.

The near-term resistances, meanwhile, are at 1,444 points and the psychological 1,450 points respectively.

Malacca Securities Research

The FBM KLCI extended the decline for the fifth session with the profit taking activities persisted on heavyweights.

However, Wall Street rose as jobs data came in above consensus expectations where non-farm payroll added 199,000 jobs in November vs estimates of 180,000. Although it pushes back the potential rate cut from March to May 2024, the jobs data has shifted the narrative towards a soft landing which is helping the overall market sentiment.

For this week, we still expect buying interest to emerge on the local front, especially after Nvidia Corp president and CEO Jensen Huang visited Malaysia.

On the commodity markets, Brent crude prices rebounded for the second session after a five-day losing streak amid demand concerns.

The FBM KLCI drifted lower for the fifth session. The technical readings on the key index were negative with the MACD Histogram having turned negative while the RSI dipped further below the 50 level.

The resistance is pegged around 1,460-1,465 while the support is at 1,430-1,440. – Dec 11, 2023

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