BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Although the FBM KLCI ended with marginal losses yesterday, the FBM KLCI managed to recoup most of its intraday losses in the afternoon session after Bank Negara Malaysia (BNM) reduced interest rates for the first time in two years as expected.
The broader market was more sanguine as many stocks rebounded on optimism that the US’ 25% tariffs on Malaysian goods could be lowered in due course.
Consequently, market breadth turned positive but the wait-and-see stance still saw traded volumes slipping below 3 billion shares.
BNM’s interest rate cut was timely to cushion against some of the impact from the Trump tariffs on Malaysian exports to the US for this may provide more breathing room for the Malaysian economy as well as the equity market’s near-term performance.
Although there has been renewed weakness when the tariffs were announced, the reaction has been relatively mild as there is still room for negotiations on the tariffs.
Consequently, we see the key index largely holding up, providing hope for a recovery as market players await more developments on the tariff issue over the next few weeks.
This also means that the FBM KLCI’s sideway trend could persist over the near term on a wait-and-see stance with the key index likely to remain above the 1,500 level due to the soft selling pressure.
The supports remain at the 1,525 and 1,520 points respectively while the hurdles are at the 1,533-1,537 levels, followed by the 1,540 level.
Malacca Securities Research
With BNM lowering its OPR (overnight policy rate) by 25bps (basis points) to 2.75%, we favour the REIT sector as a lower OPR makes REIT dividend yields more attractive than FDs (fixed deposits) with Sunway REIT and Pavilion REIT remaining our top picks.
We also like LGMS Bhd (M+ target price: RM1.09) following its latest news on acquiring a 27% stake in IT services firm Antarex Holdings Sdn Bhd.
This will allow LGMS to leverage Antarex’s regional market presence by introducing its cybersecurity solution, StarSentry, to a broader client base across Southeast Asia, hence aligning with the group’s regional expansion strategy.
Lastly, investors will also be watching Prime Minister Datuk Seti Anwar Ibrahim’s meeting with US Secretary of State Marco Rubio today, particularly regarding the 25% tariff imposition on Malaysia.
The local bourse has started to show signs of breaking down the EMAs with technical indicators trading mixed; the MACD histogram is hovering in the positive territory while the RSI has hooked downwards.
Resistance is anticipated around 1,544-1,549 while support is located at 1,509-1,514. – July 10, 2025
