BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was no let-up in the FBM KLCI’s sell-down as it ended yesterday on another weak note and below the 1,520 level amid increased selling by foreign funds.
This saw the key index bucking the mostly positive performances among regional indices that were lifted by a US court’s blockage on President Trump’s Liberation Day tariffs.
However, the broader market was mixed with the ratio of winners and losers nearly equal. There was also a pick-up in trades that rose by nearly a third to 3.3 billion shares.
There appears to be no let-up in the selling pressure among the key index constituents following reversal of the key index’s recovery from the tariff-induced sell-down after it topped out at the 1,580 level some two weeks ago.
The selling has left sentiments frayed and sending more market players to the sidelines, particularly among foreign investors that have been net sellers again.
As a result, the FBM KLCI’s dour trend is likely to sustain over the near term as there are still few signs of a let-up as yet.
The results reporting season is also coming to an end with the less-than-stellar reporting having provided few positives for market players to follow.
Therefore, the key index is likely to end the week on another sombre note with the supports now at the 1,510-1,515 levels and 1,504 point respectively. The immediate resistance is at the 1,520-1,523 levels, followed by the 1,530 level.
Malacca Securities Research
According to the Investment, Trade and Industry Ministry (MITI), ASEAN could generate an additional US$300 bil in green revenues and unlock up to US$1.5t mil in value by 2030 through green investments and regional collaboration in power grids, carbon markets and clean energy incentives.
With rising adoption of green energy and stronger cross-border efforts, we believe local solar players stand to benefit.
Despite the construction sector’s steep sell-off, we view this as temporary profit taking as the sector remains supported by data centre investments and major infrastructure developments, particularly Johor and Sarawak.
Lastly, we initiated coverage on Inta Bina Grouop Bhd (M+ fair value: 74 sen).
The key index extended its losses and traded below the MA (moving average) lines with technical indicators showing negative momentum at the current juncture; the MACD histogram expanded negatively while the RSI continued to hook below 50.
Resistance is anticipated around 1,533-1,538 while support is located at 1,498-1,503. – May 30, 2025
