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 saw a mild retreat yesterday, ending its five-day winning streak as profit-taking activities emerged on some of the recent winners like Tenaga Nasional Bhd and Public Bank Bhd.
Nevertheless, the key index managed to end the day at its intraday high with many lower liners also continued their ascend on sustained bargain hunting activities with the FBM Small Cap index gaining more than 1.0%.
This enabled total gainers to outpace losers by a wide margin as traded volumes surged to over 5 billion shares for the day.
Despite yesterday’s retreat and the FBM KLCI’s inability to clear the psychological 1,550 level, the undertone is still firm premised on the continuing buying support from foreign funds as well as the overall increase in market interest.
The increased participation is helping to shore up market sentiments further and there remains value on the key index components which are attracting bargain hunting given they are still trading below their historical forward averages.
With the sanguine undertone coupled with key overseas equity indices making further headway, the positivity remains with the key index possibly re-testing the 1,550 level again.
Above that, the targets remain at the 1,552-1,556 levels, followed by the 1,561 level. The supports, meanwhile, are at the 1,542-1,545 levels and at 1,540 points respectively.
Malacca Securities Research
We expect the local bourse to trade on a firmer footing this session following a positive lead from Wall Street which is driven by persistent buying interest in the tech stocks after the de-escalation of the US-Vietnam trade deal coupled with the return of foreign funds over the past week.
We anticipate the resumption of data centre theme could lead to more positive trading activity within the technology and telco sectors whereby Telekom Malaysia Bhd has recently experienced a breakout move.
For a more conservative play, we like IGB REIT and Sunway REIT given their active asset acquisition activities and sustained interest in the sector.
Meanwhile Mr DIY Group (M) Bhd, 99 Speed Mart Retail Holdings Bhd and Eco-Shop Marketing Bhd could remain as traders’ focus in view of high inflationary environment.
The local bourse traded flat on Thursday but maintained above the EMA60 with technical indicators showing bullish signals; the MACD histogram has expanded above zero while the RSI is trading above 50.
Resistance is anticipated around 1,563-1,568 while support is located at 1,528-1,533. – July 4, 2025
