BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more selling on Bursa Malaysia yesterday as market sentiments were affected by concerns over rising Treasury yield, sending many regional equity indices lower as well.
On the key index, it dived to its lowest level since end-April as the sell-down escalated, particularly on banking stocks.
In the broader market, selling was also prevalent amid the weaker sentiments that resulted in total losers overwhelming gainers by more than a 2-to-1 ratio.
With sentiments remaining largely frail, market conditions are likely to stay insipid with the lingering headwinds of slowing global economic growth to continue sending market players to the sidelines for now.
Consequently, market players are also casting aside the release of corporate results for cues with the market headwinds to continue affecting sentiments over the near term.
Even after the recent streak of selling, there are still few signs of a rebound as ye with the market’s weakness likely to prevail up to the end of the trading week albeit we think it could attempt to find some stability ahead of the weekend.
The FBM KLCI could now be looking at the 1,520 level now for support but if that gives way, the ensuing support is at the 1,515-1,518 levels. The resistances, on the other hand, are at 1,533-1,536 levels, followed by the 1,541 level.
Malacca Securities Research
Overall, we believe the market may trade slightly positive, tracking Wall Street’s futures movement.
With little progress in easing renewed US-China tensions, we expect US chip restrictions to cap any significant upside for technology stocks.
However, we see trading opportunities within the construction sector such as Sunway Construction Group Bhd following a recent flag formation breakout and better-than-expected quarterly earnings coupled with DC (data centre) contract wins.
We also believe Inta Bina Group Bhd could continue to benefit from active land banking by developers like Gamuda Bhd.
Meanwhile, we are positive on selected stocks within the renewable energy, consumer and telco sectors.
The key index has extended its losing streak, snapping below the MA (moving average) lines with the technical indicating that momentum is negative at the current juncture. The MACD histogram expanded negatively while the RSI hooked below 50 level.
Resistance is anticipated around 1,542-1,547 while support is located at 1,507-1,512. – May 23, 2025
