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

Malaysian stocks remained southbound with the losses in tandem with the weakness in regional indices.

In the process, a new low for the year was formed with the key index also slipping to its lowest level since May 2020.

Selling was overwhelming as losers were nearly four times more than gainers with the cautiousness also building up following the dissolution of the Malaysian Parliament. Traded volume picked up to exceed the 2.0 billion shares mark.

Market conditions are likely to turn cautious over the near term with few catalysts and continuing worries over the state of the global economy that will continue to dominate sentiments.

At the same time, the depreciating ringgit – coupled with an impending general election that is still difficult to call – will leave market conditions uncertain for the time being.

Foreign players have been net sellers of late and the trend is likely to continue as they move into higher yielding markets and instruments.

As such, the downside bias looks to remain for now with the immediate support lowered to 1,380 points.

Further below, the next supports are at the 1,370-1,376 levels and 1,360 points. On the other hand, the hurdles are at 1,390-1,393 levels and the psychological 1,400 points.

Malacca Securities Research

The FBM KLCI closed near the 52-week low, taking cue from the negative regional markets on the back of persisted worries over impact of ongoing rate hikes as well as the dissolution of parliament effective Oct 10.

As global investors remained cautious ahead of the US inflation data tomorrow (Oct 13), we reckon the local bourse will likely to stay negative bias at this juncture without any fresh catalysts.

Commodities-wise, Brent crude traded above the US$94/barrel mark while crude palm oil (CPO) price hovered slightly below RM3,750/metric tonne.

The FBM KLCI plummeted below the psychological 1,400 level again as selling pressure persisted for the third straight session.

Technical indicators, however, implied an oversold market as the MACD Histogram extended a positive bar while the RSI dipped below the oversold 30 level. The next support is monitored at 1,365, followed by 1,355 while resistance is pegged along 1,400-1,430. – Oct 12, 2022

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