BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI extended its recovery yesterday in line with the positive trend among regional indices as market conditions remained conducive for bargain hunting on some of the recently beaten down key index constituents.
The upsides, however, were more modest as buying rotated into laggards with lower liners gains also becoming more modest on bouts of profit taking.
As a result, total gainers just pipped gainers for the day.
Following a rebound from the tariff-induced selling to the 1,400-support level, further gains appear to be more difficult to come by due to the relatively thin follow-through buying interest, particularly as the key index approaches its next psychological level of 1,500 points.
While local players have been providing much of the buying support, foreign buyers have been relatively quiet with their lack of activity could lead to more subdued conditions as market players are still assessing impact of the tariffs on the economy and corporate earnings performance.
As overseas equities are also reaching a plateau from their recent recovery, this may cause stocks on Bursa Malaysia to be range-bound as market players assess their next moves.
The immediate hurdles are at the 1,490-1,495 levels, followed by 1,500 points. The supports, meanwhile, are at the 1,480-1,483 levels and at 1,473 points respectively.
Malacca Securities Research
President Xi Jinping’s second day of his visit to Malaysia will continue to be a key focus in town.
Meanwhile, despite the sell-down in the local technology index following the US probe into semiconductors imports, we believe that software-related stocks will be somewhat insulated from US tariff pressures.
This might present bargain-hunting opportunities on cybersecurity-related counters such as Cloudpoint Technology Bhd and LGMS Bhd which are also benefiting from the increasing data centre investments in the country.
Moreover, national utility giant Tenaga Nasional Bhd which bagged a RM705 mil maintenance contract from the Kuwait government is expected to continue benefiting from data centre and renewable energy investments in the country.
Despite the FBM KLCI having rebounded closer to the 1,500 level, the key index is hovering below the MA (moving average) lines with technical indicators showing recovery signals; the MACD histogram expanded above zero while the RSI is approaching 50.
Resistance is anticipated around 1,501-1,506 while support is set at 1,466-1,471. – April 16, 2025
