BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks mounted a decent rebound yesterday, largely contributed by easing selling pressure from foreign funds and the emergence of mild bargain hunting on selected index heavyweights like YTL Corp Bhd and YTL Power International Bhd that led the key index higher.
The positivity also extended to the broader market with most Bursa Malaysia sector indices in the positive zone. This allowed total gainersto beat losers by nearly a 2-to-1 ratio but traded volumes were still tepid at 2.45 billion shares, little changed from a day earlier.
The firmer recovery yesterday is welcomed to end the FBM KLCI’s prolonged consolidation from the most recent top of 1,580 level while providing some relieve from the gloomy conditions on Bursa Malaysia.
Further bargain hunting is possible, coinciding with easing of the sell-down by foreign funds as the key index looks to find firmer support above the psychological 1,500 level that has held up thus far.
Nevertheless, the upsides may also be more gradual due to the availability of few market leads.
Furthermore, lingering concerns over the state of global and Malaysian economies may still temper some of the upsides, particularly as the buying support is still selective and many market players are still on the sidelines.
On the upside, there are resistances at 1,525 points and 1,533 points respectively while the supports are pegged at 1,508 points and the 1,500 level.
Malacca Securities Research
Tracking Wall Street’s overnight weakness, the local bourse may trade on a softer tone.
Nonetheless, growing power demand from data centre investments coupled with the on-going National Energy Transition Roadmap (NETR) masterplan and Tenaga Nasional Bhd’s expanding capex could bode well for utility players like Gas Malaysia Bhd, MN Holdings Bhd and KJTS Group Bhd.
In addition, the construction and property sectors remain upbeat, supported by active land banking and data centre developments.
We favour construction counters like Inta Bina Group Bhd and Binastra Corp Bhd given their long-standing relationships with major developers.
The key index rebounded but still 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 is approaching an oversold level.
Resistance is anticipated around 1,533–1,538 while support is located at 1,498–1,503. – June 6, 2025
