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

After an insipid start to the day, Malaysian equities posted a turnaround in the afternoon session that saw the FBM KLCI close-in on the 1,490 level at the close, boosted by the end-of-month window dressing activities and the FTSE-Bursa Malaysia constituents’ re-alignment.

The broader market was mixed, but gainers still outpaced losing stocks for the day with market interest also improving that saw traded volumes jumping nearly 40% for the day.

There could be more near-term upsides as market optimism is returning following the US Federal Reserve’s move to slow its future interest rate hikes that sent global stocks higher overnight.

The latest development could also buoy Malaysian equities at the start of the month as the slower future interest rate hikes may lift the near-term market sentiments.

Back home, market players are still anticipating the formation of the new cabinet that is seen as crucial to implement the much-needed reforms to the country’s economic and political undertone.

With Malaysian stocks looking to head higher, the 1,490 hurdle is likely to be breached with ease and the ensuing hurdles is at the psychological 1,500 level which is followed by the 1,512 level.

On the downside, the supports are at 1,480 and 1,467 points respectively.

Malacca Securities Research

The FBM KLCI rebounded in tandem with the regional bourses as bargain hunting activities emerged in the mid-day trade.

With the strong surge on Wall Street, the positive sentiment may spill over to stocks on the local exchange; buying interest has returned following the US Fed chair Jerome Powell’s speech on scaling back the pace of interest rate hikes as well as the easing restrictions in selected region in China.

On the local front, investors may monitor the formation of the Cabinet and the re-tabling of Budget 2023. Commodities-wise, Breny crude price surged above the US$86/barrel mark while crude palm oil (CPO) price hovered above RM4,200/metric tonne.

The FBM KLCI ended in the positive territory after recouping all its intraday losses. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI is hovering above 50.

Resistance is set along 1,490-1,500 while the support is located around 1,430-1,450. – Dec 1, 2022

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