Bursa Malaysia has moved higher in back-to-back sessions, collecting more than a dozen points or 0.8 percent along the way.
The Kuala Lumpur Composite Index now sits just above the 1,490-point plateau and it may add to its winnings on Tuesday.
At 9.15 am, the FBMKLCI rose +1.37 points to open at 1,492.56.
RHB Retail Research in a note today (Jan 23) said the FKLI sustained its upside movement on Monday, climbing 6.50 pts higher at 1,494 pts with an eye to reach the 1,500-pt mark.
Opening higher at 1,491.50 pts, the index fluctuated between a low of 1,488 pts and a high of 1,497 pts before closing above the opening level.
This marks the second consecutive session of positive momentum – signalling a recovery from the recent pullback and aligning with expectations for a return to the 1,500-pt threshold, as highlighted in the previous report.
Additionally, with the RSI improving at 60% positive territory, there are indications that the bullish momentum is likely to endure.
The uptrend resumption would be confirmed if the index surpasses the 1,500-pt threshold. Premised on the bullish setup, our positive trading bias is maintained.
Traders should retain the long positions initiated at 1,455 pts, or the close of 3 Nov 2023. To manage the downside risks, the stop-loss threshold is fixed at 1,450 pts.
The first support is established at 1,470 pts, followed by 1,450 pts. On the upside, the nearest resistance is eyed at 1,500 pts, followed by the 1,530-pt level.
Malacca Securities (MSSB) said the FBMKLCI (+0.32%) closed higher, despite the mixed regional markets’ performance, due to buying pressure in selected utilities and Telco heavyweights.
On the broader market, both the Utilities sector (+2.14%) and the Construction sector (+1.86%) were the top performing sectors.
The Day Ahead
The FBMKLCI extended the rebound for the second session as buying support emerged within selected index heavyweights within the Banking and Utilities sector following the small-cap and lower liners selldown started 2 weeks ago.
Meanwhile, the US stock markets headed for another round of rally as US 10-year Treasury yield dipped ahead of several important key economic data such as the (i) US GDP, (ii) core PCE Index and (iii) US PMI; the Dow closed above 38k for the first time.
Given the positive rally on Wall Street, we believe the buying interest may persist on the local front. On the commodity markets, the Brent oil spiked near the USD80/bbl mark after a drone attack on a Russian port in the Baltic Sea.
Sectors focus: Following the Wall Street rally, we expect buying support to prevail on the local front, especially the Technology sector. Meanwhile, we noticed strong trading activities within the h the strong sustaining rally in the US, we expect buying interest to build up on the local exchange within the Construction, Property and Utilities sectors, which is within our expectation as it is in tandem with the ongoing
catalysts of (i) the potential revival of KL-SG HSR, (ii) easing requirements of MM2H as well as (iii) the focus in the Johor-region investments. We believe the Telco sector will benefit from the rising demand on data centre as well.
Bloomberg FBMKLCI Technical Outlook
The FBMKLCI ended higher for the second consecutive session. The technical readings on the key index were however mixed, with the MACD Histogram extending another negative bar, while the RSI maintains above the 50 level.
The resistance envisaged around 1,510-1,520 and the support is set at 1,460-1,470.
CGSCIMB said Asian stock markets finished mixed on Monday as investors were concerned about the absence of fresh stimulus in China. The local benchmark FBMKLCI (KLCI) rose 4.82pts or 0.32% to end the day at 1,491.19.
Plantation (-0.17%) was the only laggard for the day. The best performing sectors include utilities (+2.14%), construction (+1.86%) and property (+1.64%).
Trading volume reduced to 4.80bn (down from 5.39bn on Friday) whereas trading value improved to RM3.12bn (up from RM2.73bn previously).
Market breadth stayed positive as 644 gainers outperformed 375 decliners. The benchmark gapped up and formed its second white candle yesterday, lifted by returned buying interest in YTL, Genting and telco heavyweights.
The KLCI is likely to continue on its rebound from Friday’s swing low in the near-term.
The 1,500-1,510 band remains the immediate resistance for now. A breakout and a close above this said resistance band may take prices up towards the 1,521- 1,527 levels next.
The 1,477 and 1,470 level are the immediate support. Any move below 1,470 would require us to re-evaluate our near-term bullish view for
the benchmark.
Our portfolio stays in risk-on mode this wee
