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 key index continues to post decent gains as it ended yesterday’s session at its highest level since February this year.

The gains also allowed the FBM KLCI to close at its intraday high amid improving market sentiments that were buoyed by the combination of reduced odds of further interest rate hikes and China’s better-than-expected economic data.

The broader market also gained ground albeit milder as market interest picked up with traded volumes climbing to nearly 4 billion shares for the day.

With investor sentiments remaining sanguine, there should be further near-term upsides as the market continues to cheer the possible end of the interest rate upcycle that has plagued global equity markets for the past few quarters.

At the same time, there is hope that China’s economy could be on the mend after a slow recovery following the end of its pandemic lockdowns earlier this year that could also bolster the economic outlook of regional economies.

These positives should also permeate to stocks on Bursa Malaysia and continue to tip the key index higher over the near-term.

Although we do not rule out bouts of quick profit-taking actions after yesterday’s gains, any pullback is likely to be mild amid the firmer buying interest that should keep the upward streak intact for now.

On the upside, the hurdles are now at 1,472 points and the 1,474-1,477 levels. The immediate support is at the 1,464 level, followed by the 1,461 level.

Malacca Securities Research

Following the volatile move last Friday, the FBM KLCI closed significantly higher for the second session straight amid solid buying interest after the cooling of the inflationary pressure in the US.

Also, Wall Street gained momentum with the anticipation of a potential rate hike pause going forward with the slowdown in consumption activities.

Meanwhile, the US-China meeting has made “real progress” with discussions aimed at easing friction between the two superpowers over military conflicts, drug-trafficking and artificial intelligence.

We believe this will be boosting the stock markets to higher levels at least for the near term. On the commodity markets, Brent crude prices traded lower around US$81/barrel.

The FBM KLCI ended higher with another solid flag breakout. The technical readings on the key index are mixed with the MACD Histogram extending the first negative bar while the RSI maintains above 50.

The resistance is pegged around 1,470-1,480 while the support is at 1,440-1,455. – Nov 16, 2023

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