BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more upsides on Bursa Malaysia on the last trading day of 2022 that allowed the key index to retest the 1,500 level.
However, the afternoon profit taking erased some of the day’s gains that only resulted in the FBM KLCI ending the year at 1,495 level with plantation and oil & gas (O&G) stocks being the main movers.
The broader market was mixed with gainers just nudging ahead of losing stocks for the day while traded volumes were little changed from the day before.
After the mild window dressing activities late last year, the FBM KLCI could turn choppier at the start of the year as concerns over the slower economic conditions in 2023 – coupled with the heightened recession fears – could return to the fore to keep market conditions cautious.
This could prompt some profit taking activities after the key index failed to clear its 200-day moving average line that could still preserve the mostly insipid market trend.
Last Friday’s weak closing on many global indices could also leave market players to be cautious at the start of 2023’s trading.
As such, the key index may see a mild pullback as market players could still stay on the sidelines for now with the supports seen at the 1,490 and 1,482 levels.
The 1,500 level looks to be a formidable level to clear for now, which is followed by the 1,503 level.
Malacca Securities Research
The FBM KLCI ended higher on the final trading day as window dressing activities in utilities, banking and telecommunications heavyweights lifted the key index albeit foreign funds having showed an outflow of RM304.1 mil.
After the window dressing activities, we expect local bourse to pullback in the near term, digesting the COVID-19 situation in China.
Nevertheless, we believe the re-opening of business activities and travel borders in China should be able to avoid the recession risk going forward.
Commodities-wise, the Brent crude traded above US$85/barrel, while crude palm oil (CPO) price hovered above RM4,150/metric tonne. Meanwhile, gold price sustained above US$1,800/oz.
The FBM KLCI climbed above its daily EMA200 as trading volume doubled from the previous session. Technical indicators turned positive as the MACD Histogram saw a positive bar while the RSI hovered above the 50 level.
Resistance is pegged along 1,500-1,510 while support is located at 1,450-1,460. – Jan 3 2023
