Bursa Malaysia has moved higher in three straight sessions, collecting more than a dozen points or 0.8 percent along the way.
The Kuala Lumpur Composite Index now sits just beneath the 1,545-point plateau although it’s due for consolidation on Tuesday.
At 9.16am, the FBMKLCi dipped -0.12 points to open at 1,544.95.
RHB Retail Research in a note today (Mar 12) said the FKLI accelerated its positive movement on Monday, climbing 9 pts to settle at 1,527 pts – firming up its position above the ascending 50-day SMA line.
The index opened at 1,517.50 pts and rose to the day’s high of 1,531.50 pts before retreating moderately at the close.
Yesterday’s stronger positive rebound, which saw a breakout above 1,520 pts, suggests that the index will likely continue to move higher in the coming sessions, testing the 1,543-pt immediate resistance.
In the medium term, the index should consolidate between the immediate resistance and the 50-day SMA line (near 1,510 pts).
The overall bullish setup will remain intact as long as the index stays above the 1,500-pt critical support level.
As such, they keep their bullish trading bias.
Traders should maintain the long positions initiated at 1,455 pts (the close of 3 Nov 2023). To minimise the downside risks, the stop-loss is fixed at 1,500 pts.
The nearest support is at 1,500 pts, followed by 1,480 pts. Towards the upside, the nearest resistance is now set at 1,543 pts – 1 Mar’s high – followed by a higher resistance level of 1,563 pts, which was the high of 28 Feb.
Malacca Securities (MSSB) said the FBMKLCI (+0.31%) ended higher, despite the mixed performance in the regional stock markets, led by selected Telco, Banking and Industrial Product heavyweights.
On the broader market, the Construction sector (+0.93%) was theleading sector, while the Energy sector (-0.99%) declined.
The Day Ahead
The FBMKLCI continues to rebound higher with buying support seen within selected Banking and Petronas-related heavyweights.
In the US, Wall Street traded mixed prior to the data-heavy week as traders will be monitoring the (i) US CPI, (ii) US PPI, (iii) retail sales, (iv) unemployment claims, (v) Empire state manufacturing index and (vi) consumer sentiment.
They believe the release of CPI and PPI data may sway the interest rate outlook.
Given the neutral tone in the US, they believe buying interest on the local front may be mild.
On the cmmodity markets, Brent oil is still trading sideways, ranging along USD81-83/bbl, while the Gold price has stagnated along USD2180 zone, but remains uptrend intact.
For the FCPO, it has breached above the RM4,100 and the momentum is picking up.
Sectors focus: On the broader market, we expect buying support to persist on a milder tone.
The iron ore futures plunges most since 2022 as inventories pile up in China and it may translate to potential buying support in iron and metal-related stocks.
Meanwhile, they like selected O&G, Banking, Property, Construction,Consumer, Technology and Plantation could see buying support picking up.
The Plantation sector will see firmer trading activities in view of stronger FCPO prices.
Bloomberg FBMKLCI Technical Outlook
After forming a hammer candle on the FBMKLCI, the key index continued trending upwards.
The technical readings on the key index, however were negative, with the MACD Histogram extending another negative bar, while the RSI approaching 50.
The resistance is envisaged around 1,555-1,560 and the support is set at 1,525-1,530.
CGS Interbational said Asian stock markets pulled back yesterday, dragged by weakness in semiconductor stocks and a selloff in Japanese equities.
The local benchmark FBMKLCI (KLCI) added another 4.85pts or 0.31% to end the day at 1,544.71.
Most sectors closed in the black with construction (+0.93%), industrial products (+0.72%) and transportation (+0.41%) leading the gainers.
On the flipside, the largest laggard was energy (-0.99%). Technology lost -0.55%, tracking the regional weakness.
Other notable decliners were property (-0.36%) and plantation (-0.18%).
Trading volume rose to 3.65bn (up from 3.03bn on Friday) but trading value decreased slightly to RM2.71bn (down from RM2.73bn previously).
Market breadth turned positive again with 523 gainers beating 465 decliners.
The benchmark continued to edge higher yesterday, forming its third white candle in a row.
The KLCI has now inched back to the 1,544-1,550 resistance.
Will the bulls kick on from here? Pushing beyond 1,550 may see the index nudge higher to test the 20-month high at 1,559 next.
The next resistance is placed at 1,570-1,583.
Pulling back below the 20-day EMA would likely indicate that further consolidation is needed.
Support is at 1,536 (20-day EMA) followed by the 1,508-1,521 support band thereafter.
Their portfolio stays in risk-on mode this week.
