Stock market investors will be watching out for some local economic data to be released in the coming week, including the Service Producer Index for the third quarter of 2023 and Industrial Production Index for September, according to an analyst.
Apex Securities Bhd head of research Kenneth Leong said other data due next week are the manufacturing statistics and principal statistics of labour force for September.
He also said that with the US interest rates kept unchanged, the markets are expected to be calmer, thus supporting Bursa Malaysia positively.
“Besides, we are seeing foreign funds returning into the local market,” he said.
The US Federal Reserve (Fed) kept its benchmark interest rates unchanged at 5.25-5.50 per cent after its two-day Federal Open Market Committee meeting which ended on Thursday.
Looking ahead, Leong said investors will be monitoring companies’ quarterly results to be released in phases.
Nonetheless, he said, the local bourse is likely to stay quiet towards the end of next week, ahead of the Deepavali celebration.
He expected the benchmark FTSE Bursa Malaysia KLCI to see an uptick to around the 1,460-level next week.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said investors remain vigilant about the unfolding geopolitical crisis in the Middle East.
Having said that, the research firm anticipated the FBM KLCI to continue its uptrend and hover between 1,440 and 1,460 for next week.
“From the technical view, the FBM KLCI experienced an upward gap on Friday, successfully breaching the 1,445-resistance level. This development indicates a favourable near-term outlook,” Thong said.
He said the next resistance level is identified at 1,465, followed by the psychological level of 1,500.
“If the benchmark index can surpass the 1,465-resistance line and it is maintained for an extended duration, we foresee additional upward potential.
“Conversely, in terms of potential downside scenarios, we see the immediate support level at 1,430, followed by 1,412,” he added.
