Buying momentum expected to be sustained on Bursa Malaysia

KUALA LUMPUR: A sustained investor confidence is set to see buying momentum persist on Bursa Malaysia with market focus shifting toward banking counters as they prepare to unveil their fourth quarter (4Q) results.

Earnings in the banking sector in the quarter are expected to come in neutral to muted amid net interest margin pressure, higher operating expenditure as well as credit costs, among others.

Head of wealth research & advisory, designated portfolio manager at UOB Kay Hian Wealth Advisors, Mohd Sedek Jantan said additionally, attention remains on China’s February purchasing managers’ index (PMI), slated for release on Friday.

“Expectations suggest marginal stability or a slight dip from 49.2 to 49.1, partly due to the impact of the Chinese New Year holiday closure on February data.

“Given the pivotal role of PMI as a barometer of business profitability, both domestic and international stock investors are primed to closely track these figures, shaping market sentiment in the region throughout the week,” he told Bernama.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said despite a pullback following a strong recent 20month rally, the FBM KLCI retains a position above all the Exponential Moving Averages (EMAs).

“The positive bias is further supported by the improving EMAs, indicating ongoing consolidation. As such, we anticipate the benchmark index will hover within the range of 1,540 to 1,570, with immediate support at 1,534, followed by 1,520.

“A notable subsequent resistance level is identified at 1,570 and a breakthrough above this level could signal further upward momentum,” he said.

The market was mixed as healthy profit-taking dominates as players continuously cashed out some gains in stocks rallying following their stellar earnings performance.

The US Federal Open Market Committee’s (FOMC) meeting minutes, which indicated a commitment to maintaining a hawkish stance, was another reason that contributed to the profit-taking activities.

On a Friday-to-Friday basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) garnered 15.56 points to 1,549.11 from last week’s 1,533.55. — Bernama