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 mounted a rebound yesterday to break its streak of losses albeit the gains were relatively benign on the back of mild bouts of bargain hunting on selected index-linked stocks.

The gains were also ahead of the Invest Malaysia event today with plantation stocks emerging as the biggest mover.

In the broader market, however, conditions were mixed that left losers ahead of gainers for the day.

Traded volumes gained slightly to near the 3 billion shares mark. Although the key index made headway yesterday, there will still be few noteworthy leads to push stocks higher over the near-term.

We also see the prospects of further global interest rate hikes to keep market sentiments guarded for longer, particularly after Wall Street indices reacted negatively to the US Federal Reserve’s chairman’s interest rate outlook yesterday.

As a result, we think quick profit taking could emerge that could detract some of yesterday’s upsides and leave market conditions listless again.

This could also see the key index revisiting its supports at the 1,450-1,455 levels with selling likely to be mostly benign as there should still be some support to keep it above the psychological 1,450 level. The hurdles, meanwhile, are at 1,460 and 1,465 points respectively

Malacca Securities Research

The FBM KLCI bounced higher as banking and commodities-related stocks gained momentum.

On the global front, worries over interest rate hikes resurfaced following hawkish remarks from the US Fed chairman Jerome Powell.

Closer to home, investors may turn their focus towards more defensive sectors amid intensifying volatility in the market while eyeing Bank Negara Malaysia’s (BNM) interest rate decision tomorrow (March 9).

Commodities-wise, Brent crude price fell towards US$83/barrel while crude palm oil (CPO) traded above RM4,150/metric tonne.

The FBM KLCI rebounded following a two-day decline as the key index closed above its daily EMA9 level. The technical indicators were mixed as the MACD Histogram extended a positive bar while the RSI hovered below 50.

The resistance is pegged around 1,500-1,510 while the support is located along 1,430-1,450. – March 8, 2023

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