BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Despite starting the session on a firm note yesterday, the FBM KLCI succumbed to profit taking as the day wore on, cumulating in the key index ending the day with minor losses.
As it is, there were few leads as North Asian stock markets were closed for a public holiday and market players were awaiting more developments on the US tariffs.
Lower liners also endured profit taking as market interest continues to thin with less than 2.5 billion shares changing hands.
The key index’s recovery appears to have run its course after the 10% gain from the low of 1,400 points last month.
The upsides which were in tandem with the gains among key global equity indices have also left many stocks’ valuation near their fair values and leaving few upsides potential amid the lingering uncertainties over the US tariffs on the country’s export dependent industries.
Therefore, the on-going results reporting season will be monitored closely to gauge the impact of the tariffs on corporate earnings along with their prospects.
In the interim, the key index may dither due to fewer compelling buying opportunities and the recent gains are digested.
This could leave the key index range-bound within a tight range of 1,540 and 1,550 points with the other support and resistance levels set at 1,535 points and around the 1,542-1,545 levels respectively.
Malacca Securities Research
Although overall sentiment on Bursa Malaysia may turn softer today, we expect buying opportunities to be seen within banking stocks as the Finance Index has risen c.10% from its April 9 low.
Alliance Bank Bhd and AMMB Holdings Bhd could be in focus as they have lagged behind peers despite healthy dividend yields.
Meanwhile, following continuous contract wins in Johor – and with prospects of replicating this success in Penang – we believe there is a trading opportunity on ITMAX System Bhd amid a downtrend line breakout.
For a more conservative play, we remain positive on KPJ Healthcare Bhd as the company has minimal exposure to US tariff risks while its solid management and brownfield expansion should provide further price support.
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 1,554–1,559 while support is located at 1,519–1,524. – May 6, 2025
