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 stocks extended their gains yesterday as the recovery continues with recently beaten down banking stocks again leading the upsides.

Market conditions improved as there were more resolve to end the banking crisis that also benefited the broader market with gainers outpacing losers for the day.

The gains on Bursa Malaysia were also in tandem with the upsides seen in regional equity indices as their performance was also buoyed by the Wall Street’s upticks.

Notwithstanding yesterday’s gains, the market could turn choppier today after the US Federal Reserve confirmed the increase in interest rates that saw US equities pulling back sharply overnight.

At the same time, the US Fed also reinforced its view that there will be more interest rate hikes ahead that could turn sentiments on its head as well as putting an end to the ongoing recovery.

As such, the FBM KLCI may lose steam and is poised for a pullback again following the weakness on Wall Street that may see it drop back below the 1,410 level over the near term.

For now, however, the psychological 1,400 level should hold as it will provide ample support for now. There is an interim support at 1,407 points while the hurdles are at the 1,416-1,420 levels, followed by 1,431 points.

Malacca Securities Research

The FBM KLCI ended on another upbeat note in tandem with regional markets which have followed the performance on the overnight Wall Street; foreign funds turned net buyers for the second session.

However, as Wall Street tumbled overnight, we expect the negative sentiment will spill over to regional benchmark indices and local bourse given the rate hike by the US Fed and the “blanket insurance” statement on depositors from US Treasury Secretary Janet Yellen.

Commodities-wise, Brent crude price moved higher towards US$77/barrel while crude palm oil (CPO) traded above RM3,670/metric tonne. Gold prices hovered above US$1,970/ounce.

The FBM KLCI advanced for the second session as final-hour bargain hunting emerged. Technical indicators however, turned mixed as the MACD Histogram turned positive while the RSI continued to hover below 50.

Support is located at 1,370-1,380 while the resistance is monitored around 1,420-1,440. – March 23, 2023

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