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 surrendered the gains it attained a day earlier with the emergence of quick profit taking activities yesterday, sending the key index below the 1,460 level and back to the 1,455-support level.

Conditions turned weaker in line with the pullback among key global indices a day earlier with lower liners also succumbing to the selling spree that left market breadth in the negative territory again. Traded volumes also slipped by nearly 20% to fall below 2.0 billion shares.

Market conditions are likely to stay unsettled over the near term in which a definitive trend has yet to be established amid the lack of direction. As such, the key index is likely to linger within a tight range for the time being.

In the interim, the key index’s movements will be dictated by short-term movements among key global indices with the key index to react positively to the overnight rebound on Wall Street.

If so, the FBM KLCI may look to mount a quick rebound that may even allow it to also re-test the 1,460 level albeit we still see the buying interest remaining relatively benign for now, particularly from local players.

Above the 1,460 level, the resistances remain at around the 1,463-1,465 levels while the support is at the psychological 1,450 level and 1,445 points respectively.

Malacca Securities Research

The FBM KLCI turned lower for the session, tracking the Wall Street overnight sentiment coupled with the regional benchmark performance.

Meanwhile, the US stock markets traded higher ahead of the Thanksgiving Holiday. Given the 10-year treasury yield headed lower coupled with favourable jobs data, we expect the overall trading tone to perform better today although the upside could be limited as the Japan stock exchange will be closed for holiday.

Nonetheless, trading activities will be focusing on the ongoing reporting season. On the commodity markets, Brent crude prices fell below US$82/barrel as the OPEC+ meeting was re-scheduled to Nov 30.

The FBM KLCI ended lower, forming another flag formation. The technical readings on the key index are mixed with the MACD Histogram forming a rounding top formation while the RSI has maintained above 50.

The resistance is pegged around 1,470-1,480 while the support is at 1,440-1,455. – Nov 23, 2023


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