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

There was more weakness on Bursa Malaysia with the political impasse continuing that left an uncertain mood on the FBM KLCI as it lost further ground.

This also resulted in most Bursa Malaysia sector indices sliding further with the exception of the energy index that was buoyed by higher crude oil prices.

Conditions on the broader market were also mostly lower with the overall market breadth remaining negative. However, traded volumes rose slightly from a day earlier.

The near-term market outlook will stay unsettled, impacted by the ongoing political uncertainties that will leave market sentiments on the weak side for longer.

The market’s wariness is also likely to persist until a new government is sworn-in which for the time being is still unknown as the impasse remains.

Therefore, the downside risk will also extend with the political developments dictating the market’s direction in the near-term.

Amid the sustained market uncertainties, the FBM KLCI could head towards the supports at the 1,430-1,433 levels, followed by 1,425 level. The hurdles, on the other hand, are pegged at the psychological 1,450 level and the 1,460 level respectively.

Malacca Securities Research

The FBM KLCI slipped for another session with persisted foreign outflow as investors remained focused on the pending selection of Malaysia’s 10th Prime Minister (PM).

Meanwhile, Wall Street advanced overnight on the back of solid company earnings. This positive momentum could spill over to the regional markets although we believe the upside on the local front could be capped due to the fluid developments in the political scene, and until there is greater clarity to boost investors’ confidence.

Commodities-wise, Brent crude price rose above US$88/barrel while crude palm oil (CPO) price climbed above RM4,000/metric tonne.

The FBM KLCI extended losses, closing below its daily EMA20 level after hovering mostly in the negative territory.

Technical indicators turned negative as the MACD Histogram extended a negative bar while the RSI hovered below 50. Resistance is set along 1,480-1,500 while the support is located at 1,420-1,430. – Nov 23, 2022

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