KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to stay choppy ahead of the 15th general election (GE15), said Hong Leong Investment Bank (HLIB) Research.
In a note, HLIB Research anticipates resistance to be at 1,469-1,482 and 1,500, and supports at 1,408-1,424 and 1,436 as market participants adopt the “wait-and-see” attitude.
“Caution among investors is mainly due to the GE15’s elevated unpredictability, exacerbated by fragmented alliances that led to multi-cornered fights.
“This is coupled with the +40% jump in registered voters since GE14 to more than 21 million voters, stemming from Undi18’s lowering of the voting age to 18 from 21 and automatic voter registration (AVR),“ it said.
After surging 96 points from a two-year low of 1,373 on Oct 13 to a high of 1,469 on Nov 14, the KLCI closed lower the second consecutive day at 1,450 on Nov 15, ahead of the crucial GE15 on Nov 19.
HLIB Research said the fall could act as a magnet for the index to retest lower supports at 1,408-1.428-1,436, with stiff hurdles at 1,469-1,482 and 1,500 zones.
Despite the sluggish closing, market breadth (gainers/losers ratio) rebounded to 1.44 from 0.97 a day ago, it said.
Bursa Malaysia Bhd and its subsidiaries will be closed Nov 18 and resume operations on Nov 21, following the caretaker prime minister Datuk Seri Ismail Sabri Yaakob’s announcement of Nov 18 and 19 as public holidays to enable Malaysians to exercise their right to vote in the GE15. – Bernama