BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Profit taking took hold yesterday, sending the key index lower to end a four-day winning streak as there were fewer compelling buying opportunities after the recent recovery.
Profit taking was widespread with many stocks giving up some of their recent gains to leave losers ahead of gainers for the day as market players cast aside some positive updates on the US import tariff.
The lower liners were also in the red with the FBM Small Cap and FBM ACE indices losing some ground.
Malaysian stocks could mount a quick recovery ahead of the Labour Day holiday tomorrow (May 1) as some progress was reported on the US’ import tariff negotiations that could provide fresh buying impetus for the key index to head higher.
The progress is seen as vital for the key index’s continuing recovery as the tariff issues has been a bane to the FBM KLCI performance over the past month, sending it to a multi-year low of 1,400 points.
Nevertheless, the way up could be more modest as the key index stocks have regained much of their losses in the recent rebound with valuations approaching their historical forward averages.
Therefore, the upsides could still be slower with the targets set at the 1,520 level, followed by the 1,526 level. The supports, on the other hand, are at 1,511 points and 1,505 points respectively.
Malacca Securities Research
In view of the positive Wall Street performance, we remain optimistic that buying momentum may persist though the upside could be capped due to tomorrow’s (May 1) Labour Day public holiday.
We observed certain technology counters forming rounding bottom formation such as SNS Network Technology Bhd, Dufu Technology Corp Bhd and Vitrox Corp Bhd.
Besides, solar-related counters are in the uptrend, presenting trading opportunities for longer term growth under the National Energy Transition Roadmap (NETR) masterplan.
Lastly, investors may consider My E.G. Services Bhd which has partnered with MIMOS Bhd to launch the Malaysia Blockchain Infrastructure (MBI) aimed at driving blockchain innovation and digital asset integration across industries.
Despite breaking above EMA20, the key index is currently resisted by EMA60 with technical indicators showing signs of recovery. The MACD histogram is trading at its positive territory while RSI is trending above 50.
Resistance is anticipated around 1,530-1,535 while support is located at 1,495-1,500. – April 30, 2025
