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 FBM KLCI continues to recover from its recent sell-down albeit yesterday’s gains were minute as the bargain hunting was more selective.

The recovery was also in tune with the region’s equity markets’ rebound as they reacted to the US Federal Reserve’s move dovish tone.

Nevertheless, the broader market was mixed, but total gainers still managed to outpace losers for the day. Meanwhile, total trades amounted to some 3.0 billion shares even though the buying interest was thinner.

The FBM KLCI is likely to remain relatively stable ahead of tomorrow’s unveiling of the Budget 2024 with market players likely to be on a wait-and-see stance.

This could allow the key index to find some near-term solace to not only preserve the gains from its most recent recovery but to also continue posting small gains in the day ahead.

Its cause will be helped by the sustained gains in key global equity market indices overnight that could also encourage the light bargain hunting and to cast aside the lingering geopolitical concerns in the Middle East.

With the gains likely to be measured, the near-term hurdle remains at 1,440 points, followed by 1,445 points. The supports also remain unchanged at 1,428 points and 1,424 points respectively.

Malacca Securities Research

The FBM KLCI ended marginally higher, in tandem with regional benchmark indices as Beijing is preparing a new stimulus to support the economy.

Meanwhile, Wall Street reversed its earlier losses after digesting the US Federal Reserve’s September meeting minutes coupled with the US Treasury yield declining.

Thus, with the positive sentiment overall in the global stock markets, we expect the buying support may persist on the local front, revolving around the ideas and catalysts in the upcoming Budget 2024 at least for the near term.

Commodities-wise, Brent crude fell more than 2% below US$86/barrel level while crude palm oil (CPO) closed around RM3,550/metric tonne.

The FBM KLCI ended slightly higher, securing above the 1,430 level. The technical readings on the key index were more positive with the MACD Histogram turned positive with the RSI approaching 50.

The resistance is envisaged around 1,450-1,460 while the support is located around 1,420-1,430. – Nov 12, 2023

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