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 continues to march upwards, extending its gains from the tail end of 1H 2025 amid improved investor sentiments from the easing geopolitical and trade concerns.
The gains were also buoyed by the return of foreign institutions that have been net buyers of late.
Much of yesterday’s gainers emerged towards the end of the day on late bargain hunting with most broader market shares also making headway. Expectedly, market breadth remained positive with traded volumes climbing back to above 3 billion shares.
As the key index managed to end yesterday’s trade at the psychological 1,550 level once again, its undertone has firmed up further after it managed to breach successive technical resistance levels of late.
This has also allowed Malaysian equities to temporarily cast aside the lingering trade concerns where deadline for the conclusion of trade deals with the US remains on July 9.
While there are still few progress reports on the tariff negotiations, the return of foreign funds is helping to nudge the key index higher with continuing portfolio realignment exercises for 2H 2025.
With conditions still looking sanguine, there should be further near-term upsides as the FBM KLCI capitalises on its position undertone to make further headway with the targets now at the 1,552-1,556 levels, followed by 1,561 points.
The supports, meanwhile, are at 1,542-1,545 levels and at 1,540 points respectively.
Malacca Securities Research
With a positive lead from Wall Street, especially the buying interest in tech stocks following the US-Vietnam trade deal, we expect buying interest to spillover to the local exchange.
With the resumption of optimism surrounding the data centre developments, traders may want to monitor technology and telco stocks like EG Industries Bhd, MI Technovation Bhd and Telekom Malaysia Bhd
On the NETR (National Energy Transition Roadmap) front, we like solar and renewable energy segments such as Gas Malaysia Bhd and BM Greentech Bhd.
In view of higher inflationary pressure which may lead to downtrading in consumers in the near future, we favour defensive stocks in the consumer sector like Mr DIY Group (M) Bhd.
With the local bourse seeing another winning day, the key index managed to deviate 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 1,565-1,570 while support is located at 1,530-1,535. July 3, 2025
