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

Stocks on Bursa Malaysia sustained their recovery for the second day, posting decent gains to close in on the 1,410 level as more bargain hunting emerged.

The fresh buying was broad-based with most sector indicating ending higher, particularly among energy stocks as oil prices rose in anticipation of lower supplies ahead.

The broader market stocks also gathered momentum resulting in gainers accounting for twice the number of losing stocks for the day.

We see more near-term upsides as the rebound from the oversold conditions are likely to continue with the bargain hunting to provide the much-needed lift to market sentiments after September’s steep pullback.

As it is, sentiments are already improving, boosted by the strong comeback in global equities since the start of the month that are likely to permeate to Malaysian equities as well as casting aside the ongoing market concerns that includes the increased odds of a recession in 2023.

The sustained upsides could see the key index taking out the immediate hurdle at 1,410 points and head towards the ensuing resistances at the 1,420-1,423 levels. On the downside, the supports are at 1,400-1,403 levels, followed by 1,395 level.

Malacca Securities Research

The FBM KLCI witnessed further gains as selected telecommunication, consumer, and banking heavyweights lifted the key index while foreign funds turned net buyer after a 14-session sell-off.

We believe the local bourse may set for further recovery on the back of stronger oil prices, coupled with bargain hunting activities ahead of the tabling of Budget 2023.

On the commodity markets, Brent crude surged above the US$91/barrel mark after the American Petroleum Institute reported a surprise draw while crude palm oil (CPO) prices hovered above RM3,750/metric tonne.

The FBM KLCI closed above the psychological 1,400 level. Technical indicators could be signalling for further gains as the MACD Histogram contracted nearer towards zero while the RSI has hooked up above the oversold region.

The resistance is monitored at 1,430-1,450 while the support is set along 1,400. – Oct 5, 2022

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