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

There was a slight rebound on the FBM KLCI yesterday that also followed the recovery on Wall Street.

Nevertheless, market breadth was positive as the calmer market conditions helped to draw-in some fresh buying interest with almost all Bursa sector indices ended the day on a firmer note.

Lower liners and broader market shares were also mostly higher with market interest also picked up due to the calmer market conditions.

There should be further near-term upsides as market conditions are still calm that could still prompt more bargain hunting.

Much of the market’s strength emanates from the continuing gains on key global equity indices on expectations that inflation is easing, and economic activities will pick up pace in China with the end of its Zero-COVID stance.

However, the upsides could still be measured as there remains wariness over the longer-term market direction.

Consequently, the FBM KLCI may be range-bound, lingering within the 1,480 and 1,500 levels for the time being as market players continue to adopt a cautious stance. Apart from the above support and resistance levels, the others are at 1,485 and 1,490 points respectively.

Malacca Securities Research

The FBM KLCI attempted a modest rebound, powered by gains in selected telecommunication and banking heavyweights amid improving sentiment following the China re-opening theme.

As the Wall Street extended its gains amid hopes for easing US inflation, the local bourse is likely to build on yesterday’s momentum.

Meanwhile, next event that the market will be watching out could be the upcoming Federal Open Market Committee (FOMC) meeting that will be held from Jan 31 to Feb 1.

Commodities-wise, Brent crude price jumped above US$82/barrel mark as hopes for improved global economic outlook outweighed a build on US crude stockpiles. Meanwhile, crude palm oil (CPO) price hovered above RM3,890/metric tonne.

The FBM KLCI remained in a consolidation mode as the key index stabilised above its daily EMA9 level. Technical indicators, however, was turning positive as the MACD Histogram moved towards the zero line while the RSI is hovering above 50.

Resistance is set along 1,500-1,510 while support is located at 1,450-1,460. – Jan 12, 2023

Subscribe and get top news delivered to your Inbox everyday for FREE