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 ended last week on a subdued note, unable to prolong its up-moves as profit taking activities dominated trades in the absence of further developments in the US-China trade talks.
On the broader market, however, conditions were mixed with industrial products stocks ended as the day’s biggest losers while market breadth returned to the negative side again.
Meanwhile, market interest continues to thin with less than 2.0 billion shares exchanging hands.
Despite making decent rebound in the past week, overall market conditions remain listless due to the lack of noteworthy catalysts to spur fresh buying interest.
Consequently, we see the FBM KLCI staying moribund as sentiments are still largely indifferent due to the challenges that the global economy faces that could also affect the Malaysian economic outlook.
Amid the thinner market participation as market players await for more convincing impetuses, we see the key index maintaining its drifting trend for now.
It also looks to fortify its position above the psychological 1,500 level with the interim support located at the 1,510-1,512 levels, followed by 1,507 points. The resistances, on the other hand, are at 1,522 and 1,527 points respectively.
Malacca Securities Research
With the FBM KLCI rebounded from 1,500 last week amid undemanding valuations at ~14x (long term average: 17x), the local bourse is poised to open higher, tracking Wall Street’s gains.
Meanwhile, (i) rising power demand from data centres; (ii) government initiatives like National Energy Transition Roadmap (NETR); and (iii) Tenaga Nasional Bhd’s capex expansion could boost MN Holdings Bhd and KJTS Group Bhd.
We remain positive on REITs, supported Sunway REIT’s breakout and the sector’s healthy yields of over ~4%.
Lastly, we favour construction players such as Inta Bina Group Bhd given its strong ties to major developers like Gamuda Bhd-backed active land banking.
The key index closed lower and traded below the MA (moving average) lines with technical indicators showing negative momentum at the current juncture; the MACD histogram has expanded negatively while the RSI is approaching oversold level.
Resistance is anticipated around 1,531-1,536 while the support is located at 1,497-1,501. – June 9, 2025
