BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities continued to gain ground amid the easing geopolitical concerns in the Middle East, allowing for firmer 1H 2025 window dressing activities for a second day and to end last week at its highest level in more than two weeks.
The positivity was also seen among broader market shares with technology-related stocks emerging as the biggest winners.
As a result, market breadth remained in the positive side but volumes were lower last Thursday (June 26) as it slipped below 3 billion shares.
With global equities also undergoing a relief rally from the easing Middle East conflict, coupled with reports that the US and China agreeing to a trade deal, the positivity could also permeate to Bursa Malaysia, thus allowing for the upsides to sustain into the last trading day of June.
This should allow the key index to sustain it uptrend as the improved market sentiments will allow the key index to recoup more of the losses it sustained since the start of the year that was brought about by the US’ tariffs and rising geopolitical tensions.
Notwithstanding the improved near-term sentiments, there upsides could still be measured due to the relative lack of market interest as many market players are still adopting a cautious stance due to the lack of significant leads.
Therefore, the upsides may still be measured with the key index to target 1,530-1,535 levels for the time being before pushing towards the 1,541 level. On the downside, the supports are at 1,520-1,523 levels, followed by the 1,515 level.
Malacca Securities Research
Mirroring Wall Street’s upbeat performance in conjunction with undemanding valuations on the key index – currently trading at ~14.0x P/E (five-year average: 16.5x), the local bourse is likely to trade higher.
Moreover, we favour the construction and utility sectors given their potential to benefit from Malaysia’s FDI (foreign direct investment) in data centres and on-going infrastructure developments across the country.
The latter is further supported by Tenaga Nasional Bhd’s capex roll-out where we understand that another 66% of its RM10 bil allocation is expected to be utilised by year-end.
As such, we favour names like Sunway Construction Bhd, Gamuda Bhd, Binastra Corp Bhd, MN Holdings Bhd and Pekat Group Bhd.
While the local bourse saw another winning day, the key index is still trading below 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 1,543-1,548 while support is located at 1,508-1,513. – June 30, 2025
