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 rebounded yesterday, ending its four-day downtrend that was brought about the heightened geopolitical tensions in the Middle East and the likelihood of interest rates staying higher for longer.

The renewed bargain hunting also allowed the key index to climb back to the 1,540 level with the gains also in line with the stabilising global equity markets.

Broader market shares also rebounded with gainers more than twice the number of losers albeit volumes were some 30% lower.

Despite the end of the streak of losses, the near-term market conditions are still fragile that could keep the market on a leash for longer.

The rebound among key global stock indices were also relatively choppy with interest rate concerns emerging again and the Middle East geopolitical environment remaining unsettled in that they could still flare up at any time.

Therefore, buying interest could remain tepid with most market players still adopting a wait-and-see stance and until more clarity on the market’s direction appears.

This may again leave the key index to drift again with the near-term supports pegged at 1,535 points, followed by the 1,530 level. On the other hand, the near-term targets are at 1,545 points and the 1,550 level respectively.

Malacca Securities Research

The FBM KLCI rebounded from a four-day decline as bargain hunting activities emerged in tandem with the broader market except for the property sector.

However, the US stock markets took another round of beatings with its three major benchmark indices declined further as the market could be pricing in rate cuts delay towards September 2024.

We believe this expectation may pose downside risk and profit taking activities may be observed on the local exchange.

On the commodity front, Brent crude price started to retrace below US$90/barrel while crude palm oil (CPO) price fell more than 1.5% due to weaker economic data from China offsetting concerns over the geopolitical tensions. Meanwhile, gold price maintained its uptrend tone above US$2,360/oz.

The FBM KLCI index rebounded after a four-day downtrend. The technical readings on the key index were negative with the MACD Histogram extending another negative bar while the RSI maintains below 50.

The resistance is envisaged around 1,555-1,560 while the support is set at 1,520-1,525. – April 18, 2024

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