Bursa Malaysia has moved higher in five straight sessions, gathering almost 30 points or 1.9 percent along the way.
The Kuala Lumpur Composite Index now sits just above the 1,560-point plateau and it’s tipped to add to its winnings again on Wednesday.
At 9.15am the FBMKLCI rose +3.85 points to open at 1,565.49.
RHB Retail Research in a note today (Apr 23) said the FKLI’s recent bullish momentum paused yesterday after settling 3.50 pts lower at 1,560 pts – still above the ascending 50-day SMA line.
The index initially began trading lower at 1,562 pts and oscillated between 1,565.50 pts and 1,553 pts, then closing just below the opening level.
The neutral candlestick following the recent bullish momentum suggests a temporary pause in the market.
They expect the FKLI to resume its uptrend later, given the RSI is at 58% in positive territory.
Riding on the ascending 50-day SMA line, the index is eyeing to move towards the 1,600-pt mark.
With the technical setup remains bullish, RHB maintain a positive trading bias.
They recommend traders keep to the long positions initiated at 1,455 pts, which was the close of 3 Nov 2023.
To minimise the trading risks, the trailing-stop threshold is set at 1,530 pts.
The nearest support is set at the aforementioned 1,530 pts, while the lower support is marked at 1,500 pts.
Meanwhile, the nearest resistance is pegged at 1,600 pts, followed by 1,650 pts.
Malacca Securities (MSSB) said the FBMKLCI (+0.13%) ended higher, supported by banking and healthcare heavyweights as the sentiment is still lifted by China keeping benchmark lending rates unchanged and stronger medical demand, respectively.
On the broader market, the Healthcare sector (+1.48%) was the leading sector.
The Day Ahead
The FBMKLCI ended higher for the fifth session, supported by banking heavyweights and broke above the 1,560 level for the key index.
Similarly, positive sentiment was observed in the US stock markets as geopolitical tension faded in the Middle East and traders shifted their attention to the more positive corporate earnings season.
Post market, Tesla gapped up despite results that came in weaker-than-expectation as Elon Musk aims to start producing affordable new EV by 2025.
With the rebound in Wall Street, buying interest may spillover towards stocks on the local front.
On the commodity markets, Brent oil rebounded above USD88, while gold price maintained around USD2320.
Besides, the CPO rebounded for the second session and traded nearer to the RM4000 level.
Sectors focus: Following the KL20 summit, buying interest were noticed and we expect the momentum could sustain at least for the near term within the Technology sectors with the aim that Malaysia will become the chip powerhouse in the SEA region, while the attention may spill over towards Construction, Property, Utilities and Building Materials segment.
Meanwhile, traders may look into aviation and hospitality themes as MAHB passenger traffic continued to recover in 1Q24.
Bloomberg FBMKLCI Technical Outlook
The FBMKLCI index ended higher for the fifth consecutive day. The technical readings on the key index were positive, with the MACD Histogram extending the first positive bar, while the RSI maintains above 50.
The resistance is envisaged around 1,575-1,580 and the support is set at 1,540-1,545.
CGS International said most Asian stock markets finished higher on Tuesday with Hong Kong’s HSI (+1.90%) leading the gains.
The local benchmark FBMKLCI (KLCI) grew 2.05pts or 0.13% to end the day at 1,561.64.
Sectors-wise, healthcare (+1.48%) emerged as the top gainer followed by construction (+1.08%) and technology (+0.78%).
The laggards were plantation (-0.43%), energy (-0.30%) and transportation (-0.20%).
Trading volume increased to 3.73bn (up from 3.49bn on Monday) while trading value improved to RM2.79bn (up from RM2.53bn previously).
Market breadth stayed positive as 642 gainers beat 402 decliners.
The benchmark moved a tad higher and closed at its 23-month high (on a close basis) yesterday.
However, the bulls appear to have lost some momentum after falling away from its intraday high of 1,567.57 in the afternoon session.
The KLCI may attempt to push into the 1,570-1,583 range, the overhead resistance in the coming days.
On the downside, the rising 50-day EMA (1,536 currently) provides near-term support.
Longer-term support levels are unchanged at 1,528 and 1,518 thereafter. Their portfolio stays in risk-on mode this week.
