KUALA LUMPUR: Bursa Malaysia is expected to trend higher this week, moving in the 1,470 to 1,500 range on persistent optimism for the local bourse.
Rakuten Trade equity research vice-president Thong Pak Leng said, fuelled by favourable market indicators, the FBM KLCI is forecast to remain above the 1,465 level for an extended period, a threshold it struggled to maintain several times last year.
From a technical view, the benchmark index posted four consecutive white candles and moved away from all the exponential moving average lines, signalling a continuation of the ongoing uptrend.
“Notably, the next resistance level is identified at 1,500 followed by 1,527 while immediate support is at 1,465 followed by 1,450.
“If the benchmark index surpasses the 1,500-resistance line, we foresee additional upward potential,” Thong told Bernama.
Meanwhile, SPI Asset Management managing partner Stephen Innes said: “Last week had proven to be quite intriguing for Bursa Malaysia as it diverged from the global downtrend.
“This contrast occurred amid indications that optimism about US rate cuts was diminishing, coupled with the release of softer global Purchasing Managers’ Index data.
“The local bourse seems to be charting its course independent of broader market trends,” said Innes.
During the shortened trading week, the FBM KLCI started 2024 on a weak note last Tuesday.
However, bargain hunting emerged following a few sessions of sell-off.
The FBM KLCI proceeded to trend higher with heavy buying on YTL Corp Bhd
and YTL Power International Bhd, driven by robust earnings from the group’s Singapore power business and optimistic expectations in the data centre sector.
At the same time, investors continued to be keen on blue chips such as banks. — Bernama
