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

Malaysian equities remained on an upward trajectory yesterday, regaining further ground in line with the bounce in global equities.

Fresh buying was brisk, particularly among the lower liners and broader market shares albeit their gains were still muted.

Still, it helped market breadth to stay on the positive side and allowing for most Bursa Malaysia indices to end the day with decent gains. Oil and gas (O&G) stocks were among the main movers as oil prices climbed after OPEC announced production cuts.

There could be more near-term upsides as Malaysian equities look to recover from their deeply oversold conditions that has enveloped it for the past few weeks.

As it is, there are still bouts of bargain hunting emerging but after the past two day’s steep climbs, buying may become milder with bouts of quick profit taking activities emerging instead.

Market players could also be tentative and would be on the look-out for impending political developments where Parliament could be dissolved soon to pave the way for the 15th General Election (GE15) as well as clues on tomorrow’s (Oct 7) Budget 2023 announcement.

The continuing gains could see the FBM KLCI target the 1,425 level before the next hurdle at 1,430 points comes into play. On the flipside, the supports are at 1,420 and 1,413 points respectively.

Malacca Securities Research

The FBM KLCI climbed for the third consecutive session, taking positive cue from the global markets as industrial products & services and plantation heavyweights led gains.

That Wall Street ended flat without significant selling pressure may benefit stocks on the local front.

Commodities-wise, Brent crude price ticked above US$93/barrel after OPEC+ announced a production cut while crude palm oil (CPO) price sustained above RM3,750/metric tonne in anticipation of an easing of lockdown measure in China.

The FBM KLCI breached above its immediate resistance of 1,410. Technical indicators were mixed as the MACD Histogram crossed above zero while the RSI hovered above 30 to approach 50.

The next resistance is pegged along 1,430-1,450 while support is located at the 52-week low of 1,400, followed by 1,380. – Oct 6, 2022

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