BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI’s mild uptrend was sustained yesterday with bargain hunting on selected index-linked stocks helping to keep the key index in the positive territory.
Much of the buying support, however, were from domestic institutions as foreign funds were again net sellers amid the lack of details on the US-China trade deal.
In the broader market, it was a contrast as selling returned to leave overall market breadth negative again. Traded volumes also dwindled to below 3 billion shares again.
Although the FBM KLCI was still tipping higher, market conditions are still largely insipid, devoid of significant buying catalysts for market players to follow as they are still awaiting more details on the US-China trade to be unveiled.
Until then, the key index could still dither by remaining mostly range-bound due to the lack of fresh leads compounded by the prevailing low market interest despite its attempts to break out of the upper band of the range-bound trend around the 1,525 level.
Consequently, further upsides could still be a challenge as investor’s wait-and-see stance is likely to prevail that could also see mild bouts of profit taking ahead of the weekend.
For now, the supports remain at 1,520 and 1,516 points while the hurdles are at 1,530 and 1,535 points respectively.
Malacca Securities Research
Tracking Wall Street’s upbeat overnight performance, the FBM KLCI could trade on a positive tone.
We expect the overall positive developments within the US-China traded discussion to support the buying interest within the technology sector with key focus on selected upward trending companies such as Kelington Group Bhd, Vitrox Corp Bhd and Frontken Corp Bhd.
Meanwhile, we opine the overall NETR (National Energy Transition Roadmap) initiatives and green energy efforts will provide a boost to the solar-related industry, especially in rooftop solar panel installations over the coming years.
For a defensive play, we favour Sunway REIT given its quality asset portfolio as well as its stable DPU (distribution per unit) growth.
The key index closed higher but still traded below the 20/60/120-MA (moving average) lines with technical indicators showing recovering momentum; the MACD histogram has recovered to the positive zone while RSI hooked above 50.
Resistance is anticipated around 1,541-1,546 while support is located at 1,506-1,511. – June 13, 2025
