Will Bursa build on last week’s gains?

The FBM KLCI (+0.8%) staged a sharp recovery with more than two third of the key index components advanced ahead of the extended weekend break. Meanwhile, the lower liners extended their recovery trend, while all 13 major sectors closed in green with the Property sector (+2.3%) leading the pack.

Market Outlook: Bursa build up

With signs of stability alongside with the positive developments on Wall Street, we reckon the FBM KLCI may build onto last week gains in anticipation of the interest rate cut from the US Federal Reserve. The lower liners are also poised for an extended rebound as investors cheered onto the calmer market sentiment alongside with bargain hunting activities in recent beaten down stocks. Key economic data in focus include US retail sales, manufacturing production and industrial production to be release later tonight. We expect the construction sector to demonstrate further recovery ahead of the Budget 2025 announcement next month. Meanwhile, India’s move to hike import tax on crude palm oil, soybean oil and sunflower oil does not bode well for the plantation sector.

FBM KLCI Technical Review & Outlook

Technical Commentary: The FBM KLCI formed a bullish candle to recoup most of its weekly losses to tread near the middle Bollinger Band. Indicators turned mixed as the MACD Line hovered below the Signal Line, while the RSI hooked above 50. Immediate resistance is located at 1,700. Support is envisaged around 1,630.

Read More Business News