BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was a relatively uneventful session on Bursa Malaysia at the end of last week following the release of the country’s 1Q 2025 GDP that was within expectations.
As market players await for more catalysts to emerge, profit taking dominated trades to leave the key index marginally lower to end the week.
Similar conditions prevailed in the broader market, resulting in market breadth staying negative, particularly among technology-related stocks as market interest waned with less than 3 billion shares transacted on Friday.
Following the release of the country’s 1Q 2025 GDP data which was broadly within expectations, the market’s focus will now shift to the plethora of corporate earnings to be announced over the next two weeks to gauge their prospects for the upcoming quarters and the impact of the tariffs.
Nevertheless, market conditions have largely settled from the tariff induced sell-off over the past few two months and would now be looking for fresh catalysts to extend its upsides.
In the interim, calmer market conditions should help the FBM KLCI to continue building up a base near the 1,580 levels as it awaits more leads to emerge.
At the same time, the easing trade war concerns is also helping to shore up market confidence and to allow the key index to stay largely firm for the time being.
Above the 1,580 hurdle, the other resistance is at the 1,583 level, followed by the 1,588 level. The supports, meanwhile, are at 1,570 points and at 1,565 points respectively.
Malacca Securities Research
In view of softer market conditions in the US, we expect a further pullback on the local front.
However, Gamuda Bhd’s acquisition of three land parcels (totalling 336 acres for RM248.7 mil) near its Gamuda Cove project could generate a spillover effect on its long-term construction partner like Inta Bina Group Bhd.
On the renewable energy front, we are positive on Pekat Group Bhd as it should benefit from Tenaga Nasional Bhd’s 14% electricity tariff hike starting July-2025 along with its healthy exposure to the National Energy Transition Roadmap (NETR).
Also, the ringgit’s strengthening since April 9 may lower input costs, benefitting domestic companies like Leong Hup International Bhd and Teo Seng Capital Bhd with the anticipation of floating egg prices.
The key index continued to trade above the MA (moving average) lines with technical indicators showing positive signals. The MACD histogram expanded positively while the RSI is approaching 70.
Resistance is anticipated around 1,586-1,591 while support is located at 1,551–1,556. – May 19, 2025
