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 closed virtually unchanged yesterday as it stayed above the 1,470 level in a relatively uneventful session.

However, the FBM KLCI avoided the steep falls on regional indices that were spooked by the rising threat of recession.

The lower liners and broader market shares were also still mostly positive, resulting in market breadth staying positive. At the same time, traded volumes continues to rise with nearly 5 billion shares traded for the day.

Concerns that most global indices are still reeling from increased recession risk in 2023 could keep conditions muted on Bursa Malaysia for longer.

There are also few noteworthy leads to keep market players interested on the index heavyweights and foreign institutions are still reducing their stakes that could leave sentiments subdued for the time being.

Under the prevailing environment, the key index constituents may continue to drift, and this could also see keep the FBM KLCI’s 1,470 support level under threat.

If the level gives way, the supports are then lowered to 1,467 and 1,460 points respectively. The hurdles remain at 1,476 and 1,480 points respectively.

Malacca Securities Research

The FBM KLCI closed flat as the investors stayed cautious taking cue from the negative Wall Street performance.

Moreover, we expect traders to remain on the sidelines ahead of the US consumer price index (CPI) data next week coupled with the Federal Open Market Committee (FOMC) meeting.

Defensive stocks with solid track record in their earnings should be favourable under this challenging environment.

Commodities-wise, the Brent crude price tumbled towards US$79/barrel while crude palm oil (CPO) price climbed above RM4,000/metric tonne as Indonesia plans to boost its biofuel mandate which could lower down the palm oil inventory level.

The FBM KLCI closed flat and still ended below the EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a negative bar while the RSI is hovering above 50.

Support is envisaged along 1,450-1,460 while the resistance is set at 1,500-1,510. – Dec 7, 2022

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