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 ended lower yesterday, reacting negatively to the fresh interest rate concerns in the US that also affected most regional equity markets.

The pullback, however, was relatively benign with the key index still preserving the 1,450 level as the close with market players also awaiting Bank Negara Malaysia’s (BNM) interest rate decision today.

Market breadth, however, was negative with many broader market shares also ended lower as profit taking emerged following their recent rebound.

The listless market conditions is likely to be preserved and this is likely to see the key index remaining mostly range-bound in the day ahead.

Much of the market’s direction will be dependent on the outcome of BNM’s monetary policy meeting with the consensus pointing to no change in interest rates for the time being.

With the overall sentiments likely to remain subdued as most market players will be on a wait-and-see stance, this is likely to preserve the directionless trading for the most part.

The FBM KLCI should still remain above the 1,450 level as selling pressure is still mild but if the level is breached, the support is lowered to 1,445 points. The resistances, on the other hand, are at 1,460 and 1,465 points respectively.

Malacca Securities Research

The FBM KLCI surrendered yesterday’s gains in line with the regional markets’ movements as investors digested hawkish comments from the US Federal Reserve chairman Jerome Powell during the congressional testimony.

We believe Wall Street will be consolidating over the near term ahead of the CPI (consumer price index) data that will be released next week.

The local bourse may remain sideways amid growing selling pressure from the foreign funds while awaiting the OPR (overnight policy rate) decision by BNM today.

Commodities-wise, Brent crude traded below US$83/barrel while crude palm oil (CPO) is hovering above RM4,150/metric tonne.

The FBM KLCI retreated to close below its daily EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI is hovering below zero.

The support is located along 1,430-1,450 while the resistance is envisaged along 1,500-1,510. – March 9, 2023

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