What to expect on Bursa Malaysia this Tuesday

BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:

Inter-Pacific Research

Selling activities sustained at the start of the week with the FBM KLCI re-testing the 1,450 level and just tethering above the psychological support level at the day’s end.

Bursa Malaysia’s weakness was pronounced and was spooked by the continuous global recession talk that dampened sentiment further.

The lower liners and broader market shares also headed lower with total losers overwhelming gainers by a wide margin of over 3-to-1 stocks as traded volumes also tapered further.

The market’s near-term condition is likely to remain guarded ahead of the US interest rate decision this week despite the overnight rebound on Wall Street.

The uncertain market environment could again leave most market players on the sidelines even as there is more value proposition on some of the heavyweights after their recent share price retreat.

Even so, any bargain hunting activities could be light and may only result in a mild recovery for now due to the continuing cautiousness over the market’s direction.

Consequently, the key index may attempt to find some support around the 1,450 level for now that would also help arrest its downward streak.

Apart from the 1,450 support, the other support is at 1,440 level while the resistances are at 1,460 and 1,468 points respectively.

Malacca Securities Research

The FBM KLCI tumbled along with its regional peers as global sentiment was dampened by fears over global recession under the interest rate upcycle environment.

Also, we believe the local bourse will remain volatile at least until the US Federal Reserve’s September meeting amid heightened expectations for hawkish monetary policy decisions.

Commodities-wise, Brent crude price hovered around US$92/barrel mark while crude palm oil (CPO) price retraced from RM3,700/metric tonne.

Meanwhile, fears over global recession may continue to weigh on commodities prices.

The FBM KLCI breached below its immediate support at 1,465 as the key index declined for the fourth straight session. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI hovered below 50.

The next support is located at 1,430 followed by its 52-week low around 1,410 while resistance is set along 1,485-1,500. – Sept 20, 2022

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