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

After a slow start to the day, the FBM KLCI rebounded on Friday with much of the recovery emanating from fresh buying on selective heavyweights such as YTL Corp Bhd and YTL Power Bhd which enabled the utilities sub-index to emerge as the day’s biggest gainer.

The upsides also bucked the mostly lower regional markets trend while the broader market was also largely on a mixed note. Meanwhile, traded volumes continues to ease, slipping to some 4.1 billion shares for the day.

Although the key index rebounded last Friday, we still see market conditions staying wary for the time being as buying momentum could be easing after the strong early year gains.

As it is, there are fewer compelling buying opportunities and this could leave the key index to be on a drifting mode for the time being that would also allow for some of the gains to be absorbed.

Under the prevailing environment, the key index could revert to a range-bound trend and linger within the 1,480 and 1,490 levels as it looks to find a new footing. The other support and resistance levels are pegged at 1,477 and 1,496 points respectively.

Malacca Securities Research

The FBM KLCI rebounded after a two-day pullback with the support seen in selected banking and YTL Group-related heavyweights.

Meanwhile, the US stock markets traded mixed with the mixed bag of bank earnings reports while off-setting a cooler-than-expected PPI data which lifted the hopes for interest rate cuts by the US Federal Reserve in March 2024 to 72.2% from 58.2% a week ago based on Bloomberg data.

Closer to home, we believe the overall sentiment could remain positive as there are five consortiums that are expected to present their proposal for the development of Kuala Lumpur-Singapore High Speed Rail (HSR) project.

On the commodity markets, Brent crude price gained marginally higher amid rising tension in the Red Sea region.

The FBM KLCI rebounded from two consecutive days of losses. The technical readings on the key index were however mixed with the MACD Histogram forming a rounding top formation while the RSI maintains above the 50 level.

The resistance is envisaged around 1,500-1,510 while the support is set at 1,470-1,480. – Jan 15, 2024

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