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 managed to recoup all its intraday losses to end Friday’s session in the positive territory, aided largely by the easing trade war concerns after China said it will consider tariff negotiations with the US following overtures made by the latter.
This also helped the broader market shares on Bursa Malaysia to head higher, particularly technology-related stocks.
Expectedly, market breadth was positive with gainers outpacing losers by more than a 2-to-1 ratio but volumes stayed thin at just 2.74 billion shares.
Near-term market sentiments will continue to be buoyed by the de-escalating trade war and this should still see the key index making further recovery, largely in line with the rebound in most key global indices.
The start of the results reporting season could also be closely monitored for the impact of the tariffs on corporate earnings, particularly among companies with large exposures to export.
The results updates may also dictate the direction of stock prices as the recent rebound has allowed many of these stocks to recoup their steep losses and have largely reflected their fundamentals.
Following the 10% rebound from the low of 1,400 points, further gains could become more modest as there are fewer compelling buying opportunities and rotational plays could dominate trades ahead.
On the upside, the resistances are at 1,545 points and the psychological 1,550 level. The supports, meanwhile, are at 1,540 points and at 1,533 points respectively.
Malacca Securities Research
With seven consecutive sessions of foreign fund inflows, we expect technology stocks to be the main beneficiaries as the sector largely depends on FDI (foreign direct investment) and was heavily sold down in April.
Also, with the government’s decision to halve the egg subsidy – prior to its full removal by Aug 1 – we expect it to benefit egg players like Teo Seng Capital Bhd, PWF Corp Bhd and CAB Cakaran Corp Bhd as they have experienced breakouts after the news and signalling potential trading opportunities.
Lastly, we view Reach Ten Holdings Bhd to be undervalued despite rising on the listing day, supported by its strong recurring revenue and optimistic in its expansion plans.
The key index staged a solid breakout and broke above the EMA60 with technical indicators showing positive signals.
The MACD histogram continued to expand in the positive territory while the RSI is trending upward above 50. Resistance is anticipated around 1,557-1,562 while support is located at 1,522-1,527. – May 5, 2025
