BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the FBM KLCI managed to regain the 1,550 level at the end of last Friday’s trading, it was largely a listless session as the key index trended within a tight range for much of the day.
As it is, market players were awaiting more clarity from the US on its import duties, hence this saw stocks on a sideway trend that also extended to the lower liners.
Consequently, total gainers were just marginally ahead of losing stocks with traded volumes easing to 3.4 billion shares, down from 5.1 billion shares a day earlier.
The psychological 1,550 level appears to be difficult to clear amid uncertainties over the US import tariffs on Malaysian exports into the country and this is likely to keep market conditions guarded for longer.
As market players are likely to stay largely pat until the tariff issue is announced by mid-week, this could still keep the key index in a drifting mode for now.
This also means that the key index may hover around the 1,550 level for now as there are also few noteworthy domestic leads for investors to follow.
Nevertheless, this could also permit the key index to build up a base around the current levels after the recent whipsaw that has left the key index’s valuations at attractive levels below its historical forward averages.
On the upside, the hurdles are at the 1,552-1,556 levels, followed by the 1,561 level. The supports, on the other hand, are at the 1,542-1,545 levels and at 1,540 points respectively.
Malacca Securities Research
With Wall Street’s negative index futures and the July 9 reciprocal tariffs deadline looming coupled with US plans to restrict AI (artificial intelligence) chip shipments to Malaysia and Thailand, we expect the local bourse to start the week on a cautious note.
Still, the return of foreign funds and the FBM KLCI’s undervaluation may cushion the downside risk for now, supported by the data centre theme, domestic-driven plays and anticipation of major infrastructure projects roll-out.
We remain bullish on the construction and utility sectors while REITs like IGB REIT and Sunway REIT may continue to benefit should Bank Negara Malaysia (BNM) lower the OPR (overnight policy rate) in its upcoming MPC (Monetary Policy Committee) meeting.
The local bourse traded flat on Friday but maintained above both of the EMAs with technical indicators showing bullish signals; the MACD histogram has expanded above zero while the RSI is trending above 50.
Resistance is anticipated around 1,565-1,570 while support is located at 1,530-1,535. – July 7, 2025
