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 Malaysian stocks posted a quick rebound yesterday with the FBM KLCI recouping most of its losses from Tuesday on the return of bargain hunting from foreign buyers.

On the key index, it was the revival of banking and energy stocks that provided the lift – the latter also emerged as the day’s big sectoral winner.

Broader market stocks also regained some traction to end with decent gains, thus enabling market breadth to turn positive while traded volumes improved to 4.2 billion shares.

Yesterday’s rebound was encouraging as it helped to allay fears that the market’s uptrend could end after the most recent pullback left it at the crossroads again.

Even after yesterday’s rebound, market conditions are likely to remain indifferent as more convincing leads are required to provide the lift for the market to head significantly higher.

As it is, with market valuations continuing to hover near their fair values, this could also slow their ascend due to the still insipid corporate earnings outlook for the rest of the year.

Consequently, we see the broadly range-bound trend continuing for now with the key index to hover around the 1,450-1,463 levels for the time being.

This could also allow the FBM KLCI to continue building up a base. The other support and resistance are at 1,445 and 1,466 points respectively.

Malacca Securities Research

After a sharp sell down, buying support re-emerged with the FBM KLCI having rebounded, thanks to the banking and energy index members.

Also, we believe the surge in oil price has lifted the sentiment in Malaysia.

However, with the negative tone on Wall Street following the concerns over a potential hike this year – coupled with the slowdown in manufacturing activities in Germany – profit taking activities may spill over. thus limiting upside potential on the local front.

Commodities-wise, Brent crude stayed firmly above the US$90/barrel level while crude palm oil (CPO) prices continued to consolidate below the RM4,000/metric tonne level.

The FBM KLCI had bullish candlestick after a significant sell-down two trading days ago. The technical readings on the key index remained positive with the MACD Histogram extended a positive bar while the RSI has rebounded, maintaining above 50.

The resistance is located around 1,465-1,470 while the support is set around 1,430-1,440. – Sept 7, 2023

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