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 remains on at the ascend by posting minor gains after a relatively insipid morning session.

Much of the gains were contributed by plantation stocks as the sector was also among the day’s biggest movers.

In contrast, the broader market was in a sea of red as profit taking activities escalated that left market breadth decidedly negative where losers were more than doubled the number of gainers. The increased selling also saw total volumes rising nearly 28% from the prior day.

Despite the key index’s ascend, market conditions remain unsettled by still being devoid of significantly positive leads to provide strong buying impetuses.

As it is, the FBM KLCI’s recent gains have been on selective bargain hunting with most stocks on a holding pattern due to the few available leads.

At the same time, the selling pressure was also relatively benign, thus allowing the key index to largely preserve its position.

However, market conditions could turn choppier over the near term after the weakness on Wall Street overnight that could leave the key index to drift lower again.

This could cause market players to go on quick profit taking actions and send the key index back to the 1,440 support. If the level fails to hold, the 200-day moving average support line at 1,437 points will come into play.

On the flipside, the resistances are at the 1,450-1,453 levels, followed by the 1,460 level.

Malacca Securities Research

The FBM KLCI traded higher but the small cap market conditions were traded negatively following the significant profit taking activities.

Meanwhile, Wall Street closed weaker with the ongoing Middle East tension coupled with the spike in US Treasury yields. Post US markets, sentiment was affected by Tesla’s weaker-than-expected results.

Hence, we believe stocks on the local front may track the negative trading environment on Wall Street overnight with further profit taking mood to persist.

Commodities-wise, Brent crude was traded near US$93/barrel before ending around US$91/barrel level amid the ongoing geopolitical tension while crude palm oil (CPO) traded around RM3,800/metric tonne.

The FBM KLCI ended higher, still maintaining above the 1,430 level. The technical readings on the key index are still positive with the MACD Histogram having extended a positive histogram and the RSI is hovering above 50.

The resistance is envisaged around 1,450-1,460 while the support is located around 1,420-1,430. – Oct 19, 2023

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