Bursa Malaysia likely to be in consolidation mode

KUALA LUMPUR: Bursa Malaysia is expected to remain in consolidation mode amid the absence of fresh catalysts.

Apex Securities Bhd head of research Kenneth Leong anticipates the FTSE Bursa Malaysia KLCI (FBM KLCI) to range in the 1,530 to 1,560 level.

“Investors will be keeping tabs on key economic data such as Malaysia’s inflation rate on March 25 and the producer price index on March 27.

“Globally, the US fourth quarter 2023 (4Q23) gross domestic product (GDP) data will be closely watched to provide further guidance on the coming months interest rate direction,” he told Bernama.

Meanwhile, Rakuten Trade Sdn Bhd equity research vicepresident Thong Pak Leng said the benchmark index remained within a consolidative range of between 1,532 and 1,557 the past week.

“Despite this consolidation, the FBM KLCI was consistently above the 50-day exponential moving average (EMA) line.

“We, therefore, maintain the view that the benchmark index is still consolidating with a slight positive bias, with expectations of it hovering around the 20-day EMA,” he said.

Thong said the 1,508 to 1,520 level may be re-tested if selling pressure persists.

He anticipates the FBM KLCI to trend within the 1,527-1,560 range with immediate resistance at 1,570 and support at 1,520.

On a Friday-to-Friday basis, the FBM KLCI fell 10.44 points to 1,542.39 from last week’s 1,552.83.

On the index board, the FBM Emas Index increased 11.51 points to 11,555.10, the FBM 70 Index surged 306.06 points to 15,970.70, the FBM ACE Index jumped 147.28 points to 4,856.34, and the FBM Emas Shariah Index put on 60.38 points to 11,651.98.

However, the FBMT 100 Index was 1.12 points easier at 11,204.18.

Sector-wise, the Plantation Index put on 44.32 points to 7,336.67, the Industrial Products and Services Index inched up 1.84 points to 178.73, and the Energy Index improved 18.34 points to 934.34, but the Financial Services Index slipped 87.75 points to 17,188.88. — Bernama