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 break its selling streak last Friday as bouts of bargain hunting emerged on some of the recent big losers like banking stocks, thus enabling the key index to end the week on a positive note.
Overall market conditions, however, were mixed with total gainers and losers nearly equal as some selling persisted.
Nevertheless, the key broader market indices also managed to end the week with slight gains with the construction index being the day’s big mover.
Despite Friday’s recovery, market conditions are still largely unsettled as fresh tariff concerns have emerged after President Trump threatened higher tariffs on the EU (European Union) by imposing a 25% tariff on Apple products which sent US equities on a tailspin again.
Despite the fresh tariff concerns, the postponement in the implementation of the new EU tariffs could provide some breathing room for Malaysian equities at the start of the week.
Nevertheless, with market confidence sorely lacking after the most recent sell-down and with the tariff concerns flaring up again, conditions are likely to stay mostly insipid as market players continue to stay on the sidelines for now.
This could see the key index’s becoming listless with the downside bias also still lurking. On the downside, the supports are at 1,527 points and 1,520 points respectively. The resistances, meanwhile, are at the 1,542-1,545 levels, followed by the psychological 1,550 points.
Malacca Securities Research
Despite Wall Street’s weaker performance, we expect the local bourse to start the week positively after President Trump’s extension on EU tariffs dateline.
Market attention will also be on the ASEAN Summit over the next three days.
Sector wise, both construction and REITs are trading above their MA200, outperforming other sectors.
We maintain a positive outlook on these sectors where construction is supported by DC (data centre) investments and on-going infrastructure developments while REITs offer stable dividends amid current market uncertainties.
Lastly, traders may consider companies that recently announced strong quarterly results with favourable charts set-up such as Aemulus Holdings Bhd, Solarvest Holdings Bhd, Inta Bina Group Bhd and Pesona Metro Holdings Bhd.
The key index continued to close below the MA (moving average) lines with technical indicators showing weak momentum at the current juncture; the MACD histogram expanded negatively while the RSI hooked below the 50 level.
Resistance is anticipated around 1,550–1,555 while support is located at 1,515–1,520. – May 26, 2025
