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 remains on the losing trend yesterday to close below the 1,470 level amid the lack of direction that left it to drift further.

The lower closing was largely in tandem with the indifferent conditions in regional bourses.

Although market conditions were mostly subdued and mixed, many lower liners and broader market shares regained some traction to head higher even as market breadth stayed negative. Traded volumes were relatively unchanged from a day earlier.

Market conditions are likely to remain unsettled amid the continuing lack of domestic catalysts to shore-up sentiments.

As a result, the FBM KLCI may still continue to drift with market players continuing to scour for new leads and unlikely to take-up long-term positions.

Despite the gains on key overseas bourses overnight, the positivity is also unlikely to have a significant impact, and this could result in Malaysian equities remaining on the downdrift for longer.

The supports are at now at the 1,460-1,462 levels, followed by the psychological 1,450 level. On the upside, the hurdles are at 1,470 and 1,480 points respectively.

Malacca Securities Research

The FBM KLCI wobbled into the negative territory as lack of fresh catalyst coupled with the persisted fears over global recession prompted the cautious trading environment.

We believe the subdued trading tone could be temporary as the local bourse is poised for recovery on bargain-hunting activities as the Malaysian government re-iterated that it will only tighten the COVID-19 SOP (standard operating procedure) without discriminating against any nation; this should provide a boost towards our economic activities.

Commodities-wise, Brent crude tumbled towards US$77/barrel due to intensifying concerns over global crude oil demand amid soaring COVID-19 cases in China. Meanwhile, crude palm oil (CPO) price steadied above RM4,150/metric tonne.

The FBM KLCI further consolidated to close below its daily EMA20 level. Technical indicators turned mixed as the MACD Histogram extended a positive bar while the RSI crossed below 50.

Support is located at 1,450-1,460 while the resistance is pegged along 1,500-1,510. – Jan 5, 2023

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