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 sustained its ascend for a third session amid the return of buying interest on selected index heavyweights that allowed the key index to re-test the 1,550 level again albeit it ended the day below the level.

There was also a noticeable pick-up in market activity with traded volumes surging 43% to 4.5 billion shares on renewed buying in selected counters, including the lower liners.

Market breadth also stayed positive despite the mixed performance in the broader market.

As we have noted, the recent recovery is welcomed to allow the key index to stage a meaningful rebound and to re-test the immediate hurdle at the 1,550 level.

However, it remains to be seen if the level can be cleared convincingly due to lack of convincing leads to ensure a sustainable upside.

As it is, market conditions are still relatively muffled and may still turn choppy amid the transient buying interest.

Also, there are few overseas pointers for Malaysian equities to lead the key index higher while there is little change to the domestic equity market fundamentals as yet.

Therefore, we see the 1,550-hurdle prevailing for longer and the key index is likely to remain rangebound within the 1,530 and 1,550 levels for now. There are supports are the 1,540 and 1,535 levels while the other resistances are at 1,553 points and the 1,557-1,560 levels.

Malacca Securities Research

The FBM KLCI extended its rebound for the third trading day, experiencing a breakout above 1,540.

Also, the FBM Small Cap marked another fresh 52-week high as sentiment remains positive going into 2Q 2024.

However, Wall Street closed in the negative territory as the US 10-year yield rose to a four-month high with traders possibly pricing in a delay in the cutting of interest rates.

Despite the US stock markets ending weaker, we believe the sentiment on the local front may stay positive with the recovery tone from China’s PMI which came in in at 50.8 (vs forecast of 50.1).

On the commodity front, Brent crude surged further to above US$89/barrel amid on-going conflict in the Middle East while the FCPO (crude palm oil futures0 ended above RM4,380/metric tonne as demand outweighs supply in the month of March. Meanwhile, gold price rose to another all-time-high.

The FBM KLCI index ended higher for the third consecutive day. Technical readings on the key index were turning positive with the MACD Histogram forming a rounding bottom pattern while the RSI has crossed above 50.

The resistance is envisaged around 1,560-1,565 while the support is set at 1,525-1,530. – April 3, 2024

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