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 continues to make mild gains, thus enabling the key index to end last week on a positive note.
For the most part, however, market conditions were subdued amid the lack of catalysts and developments on the US tariffs but this allowed the mild bargain hunting to persist, particularly from foreign funds that have turned net buyers in recent times.
Lower liners also made-up further ground and total gainers were well ahead of losers last Friday.
The continuing market calmness could allow key index stocks to make further headway at the start of the week, sustaining the recovery theme as the market awaits more developments on the US tariffs.
As it is, most key global indices are also on their recovery path after a wretched month with market players now on the look-out for more clues on the effects of the tariffs on the global economy, preserving a largely cautious outlook for now.
Although Malaysian stocks are poised for further gains, the upsides could again be relatively benign as there are fewer compelling buying opportunities and domestic leads after many stocks have made substantial recoveries from their multi-year lows during the sell-off earlier this month.
Under the prevailing environment, the key index’s immediate hurdles are at the 1,513-1,517 levels, followed by the 1,520 level. The supports are at 1,506 points and the psychological 1,500 level respectively.
Malacca Securities Research
As the FBM KLCI reclaimed the 1,500 psychological level last Friday, we expect buying support to sustain in the near term.
Meanwhile, given the rising cyber threats recently, we believe this may provide a strong catalyst for stocks with cybersecurity capabilities which are less likely to be involved in the trade tariff regime such as LGMS Bhd and Cloudpoint Technology Bhd.
Besides, we see trading opportunities in Binastra Corp Bhd given its recent short-term breakout following the acquisition of LF Lansen which expands its renewable energy-related engineering, procurement, construction and commissioning (RE-EPCC) business segment.
For defensive investors, investors may focus on the utilities segment and stocks like KJTS Group Bhd, MN Holdings Bhd and Southern Cable Group Bhd.
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 1,524–1,529 while support is located at 1,489–1,494. – April 28, 2025
