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 key index remained on the downtrend yesterday, extending its losses for a fourth straight day as market conditions were still lacklustre amid the continuing lack of domestic leads and rising global recession concerns.

The energy sector was the biggest loser for the day, while the lower liners and broader market shares also retreated after their recent gains as profit taking came to the fore.

Traded volumes also slipped by a third while market breadth turned negative.

Market conditions are likely to stay insipid over the near-term with next week’s US Federal Reserve interest rate decision to dictate sentiments ahead.

Domestic leads are also in short supply following the recent results reporting season where corporate earnings were mixed.

As such, we see the FBM KLCI continuing to drift for the time being due to the on-going wait-and-see stance even as the selling pressure looks to have abated.

Fresh buying interest is still thin with foreign institutions reducing their exposure to Malaysian equities and their incessant selling is likely to keep market conditions subdued for longer.

The immediate support is at 1,460 points, followed by 1,450 points while the resistances are at 1,470 and 1,477 points respectively

Malacca Securities Research

The FBM KLCI extended its losing streak as investors continued to stay on the sidelines.

While investors may cheer for China’s easing of COVID-19 restrictions, gains might be capped as worries over the US Fed’s long rate-hike cycle could dampen the economic growth going forward.

On the local front, we believe focus will be on the re-tabling of Budget 2023 while traders will be watching developments on the tackling of high living costs by the government.

Commodities-wise, Brent crude extended its decline by trading below US$80/barrel while crude palm oil (CPO) price hovered above RM4,050/metric tonne.

The FBM KLCI slipped below its daily EMA9 level as the key index dropped for the fourth straight session. Technical indicators remained mixed as the MACD Histogram extended a negative bar while the RSI is hovering above 50.

Support is pegged along 1,450-1,460 while the resistance is set at 1,500-1,510. – Dec 8, 2022

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