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

Once again, the FBM KLCI managed to recover all of its intraday losses to end the session on a positive side, buoyed by a late pick-up of selected index heavyweights.

For the most part, however, market conditions were indifferent with market players still scouring for fresh leads.

As a result, lower liners sustained their consolidation trend with losers still thumping gainers for the day. The lack of impetus also resulted in traded volumes slipping further to 2.5 billion units for the day.

There is little to suggest a change to the market’s ongoing trend with the FBM KLCI likely to remain range-bound for the time being.

As it is, there are still few compelling leads from both the overseas and domestic fronts, and this will cause market players to stay on the sidelines for longer.

In addition, renewed worries over the slower global economic growth as well as lingering inflationary pressures are still keeping market players guarded over near-term.

Under the prevailing environment, the mild selling pressure is likely to continue but there is also some buying support that should keep the key index within the psychological 1,450 level and the recent highs of 1,460-1,463 levels for now.

The other support and resistance levels remain at 1,443 and 1,472 points respectively.

Malacca Securities Research

The FBM KLCI ended flat but bargain hunting activities were obvious as the index rebounded off significant support zones.

Meanwhile, Wall Street trended mostly higher within the technology sector despite a rise in CPI (consumer price index) for the month of August (above consensus expectation).

We believe investors will watch out for the US PPI (producer price index) data that will be released today for more clues on the direction of the US Federal Reserve going forward.

Do note that the Federal Open Market Committee (FOMC) meeting meeting will be held on Sept 19-20.

Commodities-wise, Brent crude is still trading above the US$90/barrel level while crude palm oil (CPO) prices rebounded to close above the RM3,700/metric tonne level.

The FBM KLCI ended another day on a flattish tone after rebounding off the 1,444 level. The technical readings on the key index were positive with the MACD Histogram forming a rounding bottom formation and the RSI is still hovering above 50.

The resistance is located around 1,465-1,470 while the support is set around 1,430-1,440. – Sept 14, 2023

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