Bursa Malaysia likely to trend sideways

The Star

PETALING JAYA: Bursa Malaysia is likely to trend sideways with slightly positive bias within the 1,470 to 1,490-point range this week, after a strong set of 2022 gross domestic product (GDP) data was released last Friday, a dealer says.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the positive GDP results would boost investor confidence and drive up stock prices, as they could lead to stronger corporate earnings and consumer spending.

“On the other hand, investors should stay cautious on external factors such as high inflation in the western bloc and increasing volatility of global equities,” he told Bernama.

Technically, Thong said immediate support is located at 1,460 while resistance is at 1,500.

Echoing Thong, Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the key focus would be towards the upcoming batch of corporate earnings releases starting from this week till the end of the month.

Globally, investors are also monitoring several US key economic data such as the inflation rate on Feb 14, as well as both retail sales and industrial production on Feb 15.

“Technically, we continue to see 1,500 as the key resistance on the FBM KLCI, while the support is envisaged at 1,460,” he said.

Meanwhile, SPI Asset Management managing director Stephen Innes said there was an element of the risk-off permeating the global market due to a more hawkish Federal Reserve outlook.

“Regardless of this week’s US consumer price index print, unless it drops significantly below expectations, global markets will continue to price in recession risk, so external factors look unfavourable.

“Many local traders think this year’s China household consumption recovery could be slower than expected. Hence, I look for Bursa Malaysia to trade very defensively this week amid more possible ringgit weakness and growing US recession concerns,” he said.