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 remained on its upward trajectory yesterday, starting 2H 2025 on positive note as buying interest on selected heavyweights remained to also aid the key index to climb above the 1,540 level at the close.
As it is, the market rose in tandem with the sustained gains among key global stock market indices with sentiments buoyed by easing geopolitical and trade concerns.
Most lower liners also tipped higher but traded volumes thinned significantly with just over 2 billion shares traded.
Near-term market conditions still look positive and may nudge the key index higher as mild bargain hunting activities are present on some of the beaten down sector leaders.
As such, the portfolio re-alignment exercise could extend but the upsides may also remain relatively modest due to prevailing low market participation rate where there are few noteworthy leads that leave many market players on the sidelines.
Investors are on the look-out for more clues on the US tariffs but with the exemptions expiring next week, there is still little progress on the trade negotiations thus far.
Meanwhile, the key index is at its 1,541 hurdle with the targets now at the 1,544-1,548 levels, followed by the psychological level of 1,550 points. The supports, on the other hand, are at 1,535 points and 1,527 points respectively.
Malacca Securities Research
With a weak lead from Wall Street, the local bourse is set to open on a muted tone. However, we maintain a positive stance on DC (data centre) and RE (renewable energy)-related stocks given the recent agreement signed by Gamuda Bhd with an RE developer.
Also, with Tenaga Nasional Bhd’s capex extending into 2H 2025, we believe this will benefit power infrastructure specialists as well as cable manufacturers.
On the construction front, we expect the sector to trade on a firmer footing on the back of higher project billings and anticipation of the final alignment announcement for the ART (autonomous rapid transit) system in Johor with an estimated value of RM6 bil-RM7 bil.
With the local bourse saw another winning day, the key index managed to break above the EMA60 with technical indicators showing bullish signals; the MACD histogram has expanded above zero while the RSI is trading above 50.
Resistance is anticipated around 1,556-1,561 while support is located at 1,521-1,526. – July 2, 2025
