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

Once again, the FBM KLCI managed to eke-out minor gains to end the day on a positive note, keeping its mild uptrend intact for third consecutive day.

For the most part, however, market conditions were still insipid with buying interest remaining benign even as most broader market shares ended in the positive territory and gaining stocks were ahead of losing ones for the day.

There was also a pick-up in traded volumes as it climbed to nearly 3.8 billion shares yesterday.

After the mild upsides over the past few sessions, the key index has regained some much-needed traction and will be looking to extend its near-term gains.

As it is, the market undertone is showing some early signs of improvements that are also helping the key index to find support above the 1,440 level that may also be seen as a prelude for some window dressing activities to emerge later in the month.

The overnight Dow Jones record closing may provide further buying impetus, particularly with the US Federal Reserve hinting of interest rate cuts next year and a soft landing to its economy can be achieved to likely keep the dreaded recession at bay.

While the near-term upsides on Bursa Malaysia may extend, the upsides could still be mild due to limited buying interest, hence the 1,450 level remains the immediate resistance. Thereafter, the hurdle is at 1,455 points while the supports are at the 1,445 and 1,440 levels respectively.

Malacca Securities Research

The FBM KLCI rebounded for the third session with the help of buying interest within selected Q Resources Bhd, Sime Darby Bhd and Westports Holdings Bhd.

Meanwhile, the US stock markets ended on a strong note as the Dow charged towards an all-time-high zone by closing above the 37,000-point level after the US Fed signalled that interest rates have peaked and projected lower policy rate by end-2024 whereby it indicated three rate cuts next year.

Moreover, the US producer prices were unchanged in November amid cheaper energy goods. With inflation data on a declining trend, we believe this may bode well for the overall market conditions as we expect further buying interest within the local stock exchange.

On the commodity markets, Brent crude prices rebounded above US$74/barrel following a drop in the greenback after the US Fed’s statements.

The FBM KLCI rebounded for the third session and closed above the EMA60 zone. The technical readings on the key index, however, are mixed with the MACD Histogram forming a rounding bottom formation while the RSI is still hovering below the 50 level.

The resistance is envisaged around 1,460-1,465 while the support is set at 1,430-1,440. – Dec 14, 2023

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