Bursa Malaysia has moved higher in two straight sessions, gathering almost 15 points or 1 percent along the way.
The Kuala Lumpur Composite Index now sits just above the 1,580-point plateau and it’s tipped to open in the green again on Tuesday.
At 9.18am, the FBMKLCI rose +2.84 points to open at 1,583.58.
RHB Retail Research in a note today (Apr 30) said the FKLI continued to trend north yesterday and closed 9 pts higher at 1,584.50 pts, thereby firming its position above the 50-day SMA line.
The index opened at 1,579 pts. After setting a foothold at the day’s low of 1,575 pts, it rose to the day’s high of 1,586.50 pts before closing.
The latest bullish candlestick reaffirms the recent bullish momentum, and traders may likely see the FKLI trending higher towards the 1,600-pt psychological resistance, followed by the next threshold of 1,650 pts.
Moreover, both the 50- and 200-day SMA lines continue to point upwards.
This, coupled with the RSI strengthening within positive territory, solidifies the bullish setup.
As such, RHB maintains a positive trading bias.
They advise traders to hold on to the long positions initiated at 1,455 pts or the close of 3 Nov 2023.
To manage the trading risks, the trailing-stop threshold is set at 1,530 pts.
The immediate support is at 1,550 pts, followed by the abovementioned 1,530 pts.
Meanwhile, the immediate resistance is fixed at 1,600 pts, followed by 1,650 pts.
Malacca Securities (MSSB) said the FBMKLCI (+0.48%) ended higher in tandem with the regional markets’ performance following the strong rebound on Wall Street overnight, supported by the positive AI momentum following the positive earnings from Microsoft and Alphabet.
Meanwhile, the key index was lifted by the YTL counters.
The Day Ahead
The FBMKLCI extended its upward trend for the third session with the help of YTL-related heavyweights and the FBM Small Cap charged towards 52-week highs.
Meanwhile, Wall Street gained momentum for another session as traders were focusing on Tesla after it had cleared a key hurdle for self-driving software in China.
This week, the market will be focusing on key events such as (i) earnings releases from Amazon, Apple, Qualcomm and AMD, Mastercard, McDonald, Starbucks, Coca-Cola, (ii) FOMC meeting (concluding on Wednesday) and (iii) jobs data.
On the commodity markets, Brent oil traded slightly below USD88 in view of easing geopolitical tension, while the CPO price is hovering around RM3800-3900 zone.
Sectors focus: With most of the indices charging towards fresh 52-week highs, they believe the overall sentiment will remain positive with healthy buying interest across the board.
They still anticipate the Technology sector to gain focus with the KL20 summit as it may shape Malaysia into a chip powerhouse in the SEA region.
Besides, they like the Construction, Property, Utilities, Solar and Building Material segments on the back of a decent renewable energy roadmap under the NETR masterplan, and the revival in mega infrastructure projects may keep the economy on a high gear.
Bloomberg FBMKLCI Technical Outlook
The FBMKLCI index continued charging higher surpassing the 1580. The technical readings on the key index were positive, with the MACD Histogram extending another positive bar, while the RSI maintains above 50.
The resistance is envisaged around 1,595-1,600 and the support is set at 1,560-1,565.
CGS International (CGS) said Asian stocks market powered up on Monday with Philippines’ PSEi (+2.13%) leading the gains in the region.
The local benchmark FBMKLCI (KLCI) surged another 7.50pts or 0.48% to end the day at 1,582.66.
All sectors ended in positive territory barring financial services (-0.18%).
Notable gainers were healthcare (+2.29%), utilities (+1.92%) and construction (+1.15%).
Trading volume increased further to 4.24bn (up from 4.11bn on Friday) while trading value grew to RM3.48bn (up from RM3.25bn previously).
Market breadth stayed positive as 668 gainers beat 438 decliners.
The benchmark extended its rally with a second white candle yesterday, lifted by plantation and YTL heavyweights.
The 1,600 psychological level is seen as the next resistance if the index takes out the 1,570-1,583 range.
Any pullback should find support near the 1,552-1,559 levels to keep the bullish momentum intact.
The rising 50-day EMA (1,542 currently) is the following support. Their portfolio stays in risk-on mode this week.
