BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more gains yesterday as Malaysian stocks continue to climb amid the persisting bargain hunting activities that allowed the key index to remain firmly above the psychological 1,500 level in contrast to the mixed regional market performances.
The positive performance on Wall Street were the main catalyst for the continuing gains among Malaysian equities that also permeated to the lower liners albeit their upsides were more modest. Market breadth also remained positive.
With market conditions on a calmer note, the FBM KLCI’s recovery is likely to continue, thus allowing the key index to end the week on a positive note.
As it is, there are fewer negative developments on the tariff front of late with the calmness able to provide opportunities for the key index to recover further.
Mild bargain hunting on some of the beaten down sector leaders will still be possible with rotational buying to also pick-up but the upsides may again be limited as there could be some profit taking ahead of the weekend after many stocks made headways during the week.
On the upside, the resistances are at 1,510 points, followed by the 1,513-1,517 levels. The supports, meanwhile, are at the psychological 1,500 level, followed by the 1,495 level.
Malacca Securities Research
With the Bursa Finance Index was up +8% from its April 9 low, we see accumulation opportunities in Alliance Bank Bhd and AMMB Holdings Bhd which have lagged behind their peers despite offering healthy dividend payouts.
Meanwhile, we view the acquisition of LF Lansen Sdn Bhd as a strategic move for Binastra Corp Bhd to expand its renewable energy-related engineering, procurement, construction and commissioning (RE-EPCC) pipeline, supported by a robust orderbook and attractive valuations, relative to peers.
Lastly, with the potential on-going de-escalation of US-China trade tensions, we believe trading interest may return to the technology sector which was heavily sold down earlier this month.
The key index is approaching the long-term EMA (exponential moving average) with technical indicators showing signs of recovery. The MACD histogram has expanded positively while the RSI is trending above 50.
Resistance is anticipated around 1,521–1,526 while support is located at 1,486–1,491. – April 25, 2025
