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

Market conditions were mixed yesterday but stocks were mostly on a range-bound trend amid the lack of buying interest that saw traded volumes continuing to thin to around 3 billion shares.

The lack of interest also saw market breadth staying on the negative side with most lower liners ending the day lower.

However, there were still bouts of selective buying that allowed the FBM KLCI to end the day with slight gains.

We see market condition remaining lacklustre ahead of the upcoming Chinese New Year holidays with market players to continue winding down their activities.

This is likely to keep the key index on a sideway pattern for now with mild buying support helping to keep the FBM KLCI afloat.

In the same vein, there is also little selling pressure which should help to keep conditions stable for the most part.

Meanwhile, the overnight gains on Wall Street are not expected to have a material effect on the key index’s near-term performance.

Amid the continuing sideway trend, the FBM KLCI’s supports stay at the 1,508-1,510 levels which is followed by the psychological 1,500 level. The resistances, meanwhile, are at 1,520 points and 1,526 points respectively.

Malacca Securities Research

The FBM KLCI hovered sideways for the past seven trading days by forming a two-bar consecutive rebound with the help from utilities heavyweights.

Meanwhile, the US stock markets managed to head higher on the back of strong corporate earnings season that offset expectations of the US Federal Reserve which may not cut the interest rates soon.

Concerns over the US regional banks returns coupled with the weaker sentiment in China may slowdown the trading activities on the local front ahead of the Chinese New Year long weekend break.

Despite the EIA reported that the US oil inventories rose by 5.5 million barrels last week, Brent crude price traded above US$79.00/barrel.

The FBM KLCI ended flat and still hovering within the consolidation phase. The technical readings on the key index were mixed with the MACD Histogram having extended another negative bar while the RSI maintains above the 50 level.

The resistance is envisaged around 1,520-1,530 while the support is set at 1,490-1,480. – Feb 8, 2024

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