BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resumed trading on a downbeat manner on Thursday as the key index drifted further from the 1,700 psychological level.
Trading activity, however, improved to 3.54 billion shares from 3.24 billion shares in the previous session.
Market breadth remained negative with 678 decliners overpowering 456 advancers as broad-based selling pressure across the market continued to show no signs of abating.
Looking ahead, the FBM KLCI is expected to remain on the defensive with sentiment likely to stay subdued as the index continues to struggle to reclaim the key 1,700 psychological level.
The lack of fresh positive catalysts alongside the persistent broad-based selling pressure suggests that any near-term recovery attempt may prove fragile and short-lived.
On the external front, market participants will be closely monitoring release of the US Chicago Purchasing Managers’ Index (PMI) data due tonight which will be scrutinised for further insights into the health of the US economy.
Technically, the key index formed a bearish candlestick after reversing all its intraday gains. Amid the persistent selling activities, the next supports are now shifted to 1,675 points and 1,665 points respectively.
Meanwhile, the resistances are envisaged at the 1,700 psychological level, followed by 1,711 points.
Malacca Securities Research
Amid the on-going sell-down in the FBM KLCI, we view this as an opportune time to accumulate banking stocks, particularly Malayan Banking Bhd and CIMB Group Holdings Bhd given their strong fundamentals and attractive dividend yields.
Meanwhile, we think traders could take positions in Dufu Technology Corp Bhd and 3REN Bhd with the former is benefitting from the surge in demand for nearline HDDs and its planned diversification into advanced manufacturing in 2027.
The latter, meanwhile, benefits from Intel’s multi-billion-dollar advanced packaging hub expansion in Malaysia.
Lastly, ACE Market-bound enterprise ICT solutions provider Pentech Holdings Bhd (M+ target price: 40 sen) will close its IPO applications today.
The FBM KLCI has retreated further with its technical indicators still showing negative momentum at this current juncture as the MACD histogram is still trading in the negative territory while the RSI is nearing the 30 level.
Resistance is seen around 1,699-1,704 with support at 1,664-1,669. – May 29, 2026
