What to expect on Bursa Malaysia this Wednesday

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 trended within a tight range yesterday but managed to eke-out minute gains at the end of the session amid the mixed regional market performance.

For the most part, the key index oscillated between the positive and negative territories but was unable to breach the 1,466 resistance level.

The lower liners were also broadly higher, allowing for total winning stocks to edge ahead of losing ones for the day. Traded volumes, however, slipped by nearly a quarter from the previous session.

We continue to see the 1,466 level a formidable level to clear as this would require a firmer market undertone and buying interest to push the FBM KLCI past the level.

For now, buying activity is still selective and could hamper the key index’s efforts to clear the significant resistance level.

Any breakout could also entice quick profit taking ahead of the Christmas holidays as follow through buying interest may remain thin due in part to lack of catalyst and market players winding down their activities for the year.

As a result, the key index could continue with its narrow trend for now and continue to tether close to the make-or-break level of 1,466 points. At the moment, the resistances remain at 1,471 and 1,475 levels. The supports, meanwhile, are at 1,460 and 1,455 points respectively.

Malacca Securities Research

The FBM KLCI traded mixed as profit taking activities kicked in after a significant rally last week but the properties and utilities sectors performed on a stronger tone.

Following dovish tone from the US Federal Reserve which signals at least three interest rate cuts next year, the US stock markets continued to charge higher for the ninth session.

This week, the market will be watching the important economic data releases such as the US GDP (gross domestic product) and Personal Consumption Expenditures (PCE) Price Index. Market sentiment might be affected should there be any disappointment in the data.

Like the previous years, we believe window dressing activities may persist throughout the next few trading sessions on the local front.

On the commodity markets, Brent crude prices rebounded nearer to the US$80/barrel zone amid the heightened tension in the Red Sea.

The FBM KLCI ended flat after a significant rally. The technical readings on the key index were positive with the MACD Histogram extending to the third positive bar while the RSI maintains above the 60 level.

The resistance is envisaged around 1,470-1,480 while the support is set at 1,440-1,450. – Dec 20, 2023

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