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 retreated at the end of last week as sentiments were rocked by fresh geopolitical flashpoint in the Middle East between Israel and Iran.
Even so, the pullback was relative measured with the key index shedding some 8.51 points to remain well above the psychological 1,500 level.
However, selling extended to the broader market shares with technology-related stocks emerging as the day’s biggest loser. This also saw losers beating gainers by a 3-to-1 margin with traded volumes a shade below 3 billion shares.
We see the key index continuing to drift at the start of the week due to the lingering geopolitical concerns that would weigh on market sentiments.
In addition, there are also few catalysts from other sources with the details of the US-China trade agreement still unavailable as well as from domestic sources which could keep sentiments on the low side for the time being.
With the market headwinds to continue dictating its direction, the FBM KLCI’s weakness is likely to prolong as selling pressure is likely to dominate trades in the day ahead.
Amid the continuing market weakness, the key index’s immediate support is at the 1,513-1,515 levels, followed by the 1,510 level. The resistances, meanwhile, are at the 1,520-1,523 levels and at 1,526 points respectively.
Malacca Securities Research
Following the intensified Israel-Iran conflict over the weekend, we expect the local bourse start the week on a softer tone as investors may adopt a risk-off approach.
Given the spike in both Brent oil and gold prices, trading opportunities may emerge in the oul & gas (O&G)-related and gold counters as both commodities are trading in an elevated environment.
Lastly, investors may continue to focus on defensive sector like utility and REITs with Gas Malaysia Bhd and Sunway REIT being our top preferences.
The key index continued to trade below the MA (moving average) lines with technical indicators showing recovering momentum; the MACD histogram has expanded above zero while the RSI is near 50.
Resistance is anticipated around 1,533-1,538 while support is located at 1,498-1,503. – June 16, 2025
