BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Profit taking continues to dominate trades with the key index retreating further below the psychological 1,550 level to settle near the 1,545 level, thus extending the FBM KLCI’s weakness for a fifth straight session.
Selling was prevalent the entire session with Petronas Chemicals Group Bhd emerging as the biggest loser among index linked stocks while technology stocks led losers in the broader market.
Expectedly, market breadth was negative as the selling pressure pushed traded volumes higher by some 25% from a day earlier.
The pullback from the overbought conditions is escalating as the key index failed to hang on to the 1,550 level while the market’s undertone is becoming more downbeat amid the lack of follow through buying interest due to fewer compelling buying options.
The on-going results reporting also provided few leads for market players to follow with the insipid market conditions likely to continue for the time being.
This also means that hopes for a rebound are also fading due to the market’s indifference as overseas equity indices are also still on a cautious stance on renewed worries over the huge US debt and deficits that already severely affected stock market sentiments.
On the downside, the supports are now at the 1,536-1,540 levels, followed by the 1,525 level. Above the immediate hurdle at 1,550 points, the other resistance is at 1,555 points.
Malacca Securities Research
Overall, local sentiment is expected to trade on a negative tone tracking Wall Street’s performance.
Trading opportunities may be seen in gold-related stocks like Aumas Resources Bhd given the recent surge in gold prices amid global economic uncertainties.
Despite the US-China tariff pause, pressure is mounting after the US warned that Huawei’s Ascend chips would violate export controls, potentially capping upside for technology stocks.
Nevertheless, we remain positive on domestic-driven construction stocks like Inta Bina Group Bhd riding on Gamuda Bhd’s growth following the latter’s recent land acquisitions.
The key index closed lower yesterday but continued to trade above the MA (moving average) lines with technical indicators showing positive signals. The MACD histogram expanded positively while the RSI hooked above 50.
Resistance is anticipated around 1,559-1,564 while support is located at 1,524-1,529. – May 22, 2025
