Will bargain hunting activities boost the FBM KLCI amid cheap valuations?

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Bargain Hunting Expected to Support FBM KLCI Amidst Undervaluation

Investors are anticipated to engage in bargain hunting for the FTSE Bursa Malaysia KLCI (FBM KLCI) in the coming days, driven by its current inexpensive valuation. This activity is expected to provide support for the benchmark index, though the overall market sentiment may remain cautious due to upcoming economic events and global concerns. The FBM KLCI concluded the week ended April 22, 2023, with a decline of 13.02 points, settling at 1,422.11.
Analysts Project Range-Bound Movement for FBM KLCI

Rakuten Trade Sdn Bhd's equity research vice-president, Thong Pak Leng, forecasts the FBM KLCI to trade within the 1,415 to 1,435 range in the upcoming week. He noted that from a technical perspective, immediate resistance is anticipated at 1,440, with support identified at 1,415. This outlook suggests a period of consolidation rather than a significant upward surge.
Global Factors Influencing Market Sentiment

Stephen Innes, managing partner at SPI Asset Management, believes the market will maintain a defensive stance until the Federal Open Market Committee meeting. He also pointed to concerns surrounding the United States debt limit as a factor that could weigh on global risk sentiment. These external pressures contribute to the projected trading range of 1,415 to 1,430 for the FBM KLCI.
Shortened Trading Week and Holiday Impact

The upcoming trading week will be shorter due to the Hari Raya Aidilfitri celebrations, with Bursa Malaysia and its subsidiaries closed on April 21 and April 24, 2023. Trading operations are scheduled to resume on April 25, 2023. This reduced trading period may contribute to muted market activity, with investors likely to be more deliberate in their trading strategies.

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Will bargain hunting activities boost the FBM KLCI amid cheap valuations?

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