What to expect on Bursa Malaysia this Thursday

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 lost more steam yesterday as profit taking activities continued and left the key index below the 1,460 level at the close.

Much of the selling was on banking stocks that also reacted to the cautious conditions among regional indices.

Although the index heavyweights dithered, the broader market continues to rebound with market breadth also turning to the positive side. However, traded volumes were thinner amid the lack of new leads.

Despite yesterday’s steeper pullback, we think that the market’s undertone is still holding steady, boosted by the easing interest rate and inflationary pressures worldwide that is also permeating to local equities as well.

Even so, there appears to be little follow through buying interest to provide further lift to the key index and the key index is likely to be left to drift again.

As it is, market players are still awaiting for more leads from the ongoing results reporting season for more inklings into the corporate earnings prospects for 2024 before making further moves.

Still, the key index could be angling for a positive end to the day after two days of pullback with the 1,460 level the immediate target.

Thereafter, the hurdles are at 1,462-1,464 levels, followed by the 1,472 level. The supports, meanwhile, are at 1,455 points and the psychological 1,450 level.

Malacca Securities Research

The FBM KLCI ended lower for another session as profit taking activities extended within the banking heavyweights.

We noticed the trading interest on Wall Street has slowed down as well after the US stock markets rose for about eight to nine days straight.

The US 10-year Treasury yield continues to ease further while the investors will be watching closely on Fed’s chair statement for more clues on the interest rate direction.

Thus, with this slowdown in trading activities, further profit taking activities may emerge within the local equities.

We expect traders to focus on the upcoming reporting season for trading opportunities. On the commodity markets, the Brent crude prices slumped further by more than 2% on higher US inventories and weak demand.

The FBM KLCI ended lower for the second session and could be forming a flag formation in the near term. The technical readings on the key index are positive with the MACD Histogram extending another positive bar, while the RSI maintains above 50.

The resistance is pegged around 1,470-1,480 while the support is at 1,440-1,450. – Nov 9, 2023

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