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 gained further traction yesterday to climb to its highest level in two weeks on the back increased buying interest on banking stocks after they passed the stress test.

There was also optimism over the state of the global banking industry as well as improved sentiments ahead of Prime Minister Datuk Seri Anwar Ibrahim’s visit to China.

Market breadth turned positive with the lower lines and broader market shares also regained ground that saw traded volumes surged past the 3 billion shares mark.

The near-term upsides look to sustain amid the improved market sentiments that can help lift the FBM KLCI past the 1,420 level.

There continues to be optimism over Anwar’s visit to China where new investments could be announced to keep market players interested.

At the same time, foreign selling seems to have abated and this may also provide some near-term confidence in the market. That key global equity indices’ continue to climb could also help to shore up bargain hunting on some of the beaten down stocks and help to extend the key index’s near-term upsides.

Above the 1,420 level, the FBM KLCI could be targeting the 1,423 level with the ensuing hurdle set at 1,432 points where the gap-down technical formation could be covered. The support, on the other hand, are at the 1,412 level, followed by the 1,408 level.

Malacca Securities Research

The FBM KLCI extended gains amid improved sentiment on the regional markets as fears over the global banking crisis appeared to ease.

We believe the risk appetite on the local front will return as upbeat earnings reports in the US – coupled with the expectations that the US Federal Reserve might be pausing the interest rate hikes – may lift market sentiment on the global markets.

Meanwhile, we will also monitor the developments on the China visit by PM Anwar with traders speculating big investments to be expected.

Commodities-wise, Brent crude remained firm above US$78/barrel while crude palm oil (CPO) traded above RM3,700/metric tonne. Gold price staged a mild pullback, hovering around US$1,965/ounce.

The FBM KLCI closed higher for the second session, breaching above its immediate resistance at 1,420. Technical indicators turned fairly positive as the MACD Histogram extended a positive bar while the RSI is approaching 50.

Next resistance is pegged along 1,445-1,460 while the support is located at 1,370-1,380. – March 30, 2023

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