Improving catalysts, sentiment to lift Bursa Malaysia

KUALA LUMPUR: Improving catalysts and global optimism are expected to keep Bursa Malaysia on positive territory this week, a dealer says.

Rakuten Trade equity research vice-president Thong Pak Leng said from a technical perspective, the week that was had seen the benchmark index close higher than its opening levels each trading day.

“Considering the 20-day exponential moving average (EMA) line turning upward and pushing further away from both the 20-day and 50-day EMA lines, we believe there is upward momentum in the near term.

“Notably, the next resistance levels are identified at 1,465, followed by the psychological mark of 1,500 and if the FBM KLCI surpasses the 1,465-resistance line, we foresee additional upward potential,” he told BK.

He added that the brokerage firm anticipated the benchmark index to trend within the 1,455 to 1,475 range for this, with immediate support at 1,450, followed by 1,440.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Cabinet reshuffle may have also lifted sentiment as the move indicates the seriousness of the present administration’s intention to enact economic reforms.

“Broadly speaking, Malaysian equities have gained momentum following the US Federal Open Market Committee’s (FOMC) decision to maintain the Fed Fund Rate steady at 5.50%, while signalling that they might cut rates in 2024.

“The FBM KLCI gained more than 20 points week-on-week as a result, therefore, the upside potential for the FBM KLCI is quite visible in 2024.

“As such, expect the benchmark index to maintain its upward trend this week,” he said.

Bursa Malaysia kicked off last week on a cautious mode as investors anticipated the outcome of the FOMC meeting last week, as well as digesting Prime Minister, Datuk Seri Anwar Ibrahim’s announcement of a Cabinet reshuffle.