BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI snapped a five-day losing streak on Thursday with the key index outperforming the mostly negative regional peers as bargain hunting activities emerged following the recent pullback.
However, trading activity eased to 3.48 billion shares from 3.85 billion shares in the previous session. Market breadth remained negative with 678 decliners overtaking 525 advancers, suggesting that the broader market undertone remain cautious.
Looking ahead, the FBM KLCI may attempt to build on its recent gains as bargain hunting continues to support selected heavyweight counters.
However, the upside momentum could remain measured as investors await the release of the US unemployment rate data later tonight which may provide fresh clues on the health of the US labour market and the Federal Reserve’s policy trajectory.
A stronger-than-expected reading could reinforce expectations of a prolonged higher-rate environment while a softer print may revive hopes for policy easing, potentially influencing fund flows across regional equity markets.
Technically, the key index formed a bullish candlestick and could attempt to find stability. The near-term resistance remains located at 1,688 points, followed by the 1,700 psychological level.
On the other hand, the immediate support is pegged at the 1,665 points and thereafter at 1,650 points.
Malacca Securities Research
Tracking the rebound on Wall Street, especially the Dow Jones index, we expect the local bourse to extend its buying support today.
With Indonesia concluding its automotive testing this month for an aggressive roll-out of the B45/B50 biodiesel mandate coupled with the anticipation of El Niño from June to August which will tighten palm oil supply, buying interest has emerged in plantation counters such as SD Guthrie Bhd, Johor Plantations Group Bhd and United Plantations Bhd.
Lastly, traders can continue to monitor IOI Properties Group Bhd and CBH Engineering Holding Bhd; the former is set to replace Sime Darby Bhd in the FBM KLCI top 30 constituents while the latter benefits from the country’s ongoing data centre boom.
While the FBM KLCI rebounded, its technical indicators are still trading at a negative momentum at this current juncture with the MACD histogram still trading in the negative territory while the RSI is trading below 50.
Resistance is seen around 1,698-1,703 with support at 1,663–1,668. – June 5, 2026
