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 yesterday on a slightly positive note, extending its uptrend for a third session and staying above the 1,580 level.
Profit taking permeated the market early in the day but sustained bargain hunting helped lift the key index higher at the close.
Broader market conditions were also more sanguine with total gainers double the number of losers. At the same time, market interest stayed firm with volumes remaining above 4 billion shares for the day.
After mounting a sturdy rebound from the easing trade war concerns, market conditions are looking toppish after it has regained some 13% from the April low of 1,400 points as well as recouping almost all the losses that was induced by the US imposition of tariffs on its major trading partners.
At the same time, the FBM KLCI’s valuations are mostly fair vis-à-vis the present market fundamentals that are still at risk from slowing corporate earnings growth due to the tariffs that affected exports.
Market players could also be awaiting the release of the country’s 1Q 2025 GDP (gross domestic product) data tomorrow (May 16) to gauge impact of the US tariffs on the Malaysian economy albeit the impact may be relatively mild due to the front-loading activities and sustained domestic activities.
As such, the FBM KLCI could revert to a mostly sideway trend for now as it looks to stay above the 1,580 level with the ensuring resistances at the 1,586-1590 levels, followed by the psychological 1,600 level.
The supports, meanwhile, are at 1,575 points and 1,565 points respectively.
Malacca Securities Research
With foreign funds flowing back into the Malaysian market, we remain optimistic about blue-chip stocks which are supported by strong fundamentals and stable dividends.
Despite global headwinds from US tariffs and geopolitical tensions, Bank Negara Malaysia’s (BNM) decision to lower its Statutory Reserve Requirement (SRR) from 2% to a 14-year low of 1% could encourage more businesses to take up loans, thus stimulating economic growth.
We maintain a positive outlook on the construction sector, driven by on-going data centre investments and major developments across the country such as the Johor-Singapore Special Economic Zone (JS-SEZ). The Construction Index has also broken above its MA200 resistance.
The key index continued to edge up with technical indicators showing positive signals. The MACD histogram has expanded positively while the RSI is approaching 70. Resistance is anticipated around 1,598-1,603 while support is located at 1,563-1,568. – May 15, 2025
