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 broke out of the psychological 1,450 level yesterday in tandem with the upbeat performance of regional indices that also reacted positively to the overnight gains on Wall Street.

Fresh buying was evident on selected stocks that allowed the key index to reverse its early session losses.

The buying also extended to the broader market and allowing for market breadth to stay positive. Market interest thinned slightly but the traded volumes remained above 4.0 billion shares.

Following yesterday’s uptick, the FBM KLCI is looking more spirited, buoyed by livelier market conditions on the return of more market players after the past two weeks’ lull.

Under the prevailing environment, the key index could extend its upsides amid the improved sentiments as it also looks to move past the 1,450 level more convincingly.

Its cause will be aided by the overnight gains on key global indices that are also riding on a recovering trend.

Back home, the results reporting season is reaching its tail-end and even though the results have been generally more subdued, there could be more near-term upsides on renewed bargain hunting activities.

However, further upsides may be more modest after yesterday’s gains with potential bouts of quick profit taking ahead of tomorrow’s National Day holiday to temper the upsides.

This means that the hurdles at the 1,460-1,465 levels will remain formidable in the near term with the ensuing hurdle pegged at 1,472 points. The 1,450 level is the immediate support, followed by the 1,445 level

Malacca Securities Research

The FBM KLCI experienced a stronger trading activity accompanied by positive catalysts emerging from the domestic scene and higher trading value and volume overall.

Also, with the positive performance on Wall Street overnight, we think the buying interest may spill over to the stocks on the local front, specifically within the technology sector.

Meanwhile, the consumer sentiment index that was below consensus expectation could be pointing towards a cooling economy with the market hoping for the US Federal Reserve to shift their stance towards a less hawkish tone.

Commodities-wise, Brent crude crossed above US$85/barrel while crude palm oil (CPO) prices traded above RM3,900/metric tonne.

The FBM KLCI experienced a two-day consolidation breakout and firmly closed above the 1,450 level. Despite the MACD Histogram extended another negative bar, it is now forming a rounding bottom formation.

Meanwhile, the RSI has continued to rise further above 50. The resistance is located around 1,460-1,470 while support is set around 1,430-1,440. – Aug 30, 2023


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