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 remained on the descent, shedding another 3.7 points to end the day at the 1,445 points support.

In the process, the key index surrendered its intraday gains as Axiata Group Bhd emerged as the biggest losers among the index-linked stocks.

In the broader market, conditions were mixed with indices like the FBM Small Cap and FBM ACE ending the day on a positive note albeit market breadth remained on the negative side. Traded volumes, meanwhile, were some 20% lesser than a day earlier.

Bursa Malaysia’s near-term conditions remain unsettled by the low buying interest and lack of catalysts to provide the much need lift.

As a result, the downward pressure is likely to remain for the time being with the key index unlikely to find sufficient traction to mount a meaningful rebound anytime soon.

With interest rate concerns abated significantly, market players are scouring for fresh impetuses. However, with the year-end break and festivities approaching, there will be few leads available for market players to follow.

At the same time, the window dressing activities are still about a fortnight away, leaving the key index on a drifting trend for now with the 1,445 level looking precarious.

A breach below this level could see the key slip back to the 1,440 support. The hurdles, on the other hand, are at the psychological 1,450 level, followed by the 1,455 level

Malacca Securities Research

The FBM KLCI ended another session lower despite the rebound move on Hang Seng Index yesterday.

Meanwhile, the US stock markets headed for a pullback after a long stretch of rally led by the profit taking activities in mega caps and energy shares.

The market’s narrative continues to point towards a firmer speculation that the US Federal Reserve will be cutting interest rates in 1Q 2024 as private payroll increased by 103,000 in November (below economists’ expectation of 130,000).

Nevertheless, we expect some buying interest may emerge on the local equities in view of Nvidia’s boss Jensen Huang making his maiden visit to Malaysia.

On the commodity markets, Brent crude prices tanked another 3.65% to trade around US$74/barrel as larger-than-expected rise in US gasoline inventories extended worries on fuel demand.

The FBM KLCI ended lower and continues to consolidate sideways. The technical readings on the key index were mixed with the MACD Histogram forming a rounding bottom formation, while the RSI is 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 7, 2023

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