BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities ended April on a strong note with the FBM KLCI surging to the 1,540 level at the close – its highest level in some six weeks as rotational buying persisted into heavyweights like Petronas Chemicals Group Bhd, Gamuda Bhd and SD Guthrie Bhd.
Much of the fresh buying were from foreign institutions as they continue to pick-up some of the beaten down sector leaders.
Although buying activity also extended to the lower liners, their ascend was more measured as traded volumes thinned to just 2.57 billion share. Market breadth, however, remained positive.
The FBM KLCI is still on track to end the week on an upbeat note, riding on the renewed buying interest from foreign funds that are continuing to take positions in beaten down key index stocks.
The broad market conditions continue to recover from the US tariff concerns as progress is seen in the trade negotiations between the US and some of its key trading partners with China also reporting that the Trump administration has approached it to negotiate for a trade deal.
These developments should keep equity markets calmer while also permitting Malaysian stocks to head higher and sustain its rebound.
With the key index breaking out of successive resistance levels, it could now be targeting the 1,543-1,547 levels before the next psychological 1,550 level comes into play. On the flipside, the supports are pegged at 1,535 points and 1,531 points respectively.
Malacca Securities Research
The local index maintained its upward momentum and is poised for further gains in the near term supported by six continuous trading days of foreign fund inflows.
Meanwhile, the government’s removal of 50% of its egg subsidy with a full removal scheduled by Aug 1 is expected to boost profitability for poultry producers.
Breakouts have been observed in several egg-related counters, including Teo Seng Capital Bhd, PWF Corp Bhd, Lay Hong Bhd and CAB Cakaran Corp Bhd, thus presenting trading opportunities.
Lastly, ReachTen Holdings Bhd (M+ target price: 71sen), a leading Sarawak-based telco service provider, will be listed on the Main Market today (May 2)
The key index staged a solid breakout and broke above the EMA60 with technical indicators showing positive signals. The MACD histogram continued to expand in the positive territory while the RSI is trending upward above 50.
Resistance is anticipated around 1,555–1,560 while support is located at 1,520–1,525. – May 2, 2025
