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 were still on a losing streak yesterday but the losses were milder as the key index hovered near the unchanged level for much of the day until a late selling sent the key index to a negative close.
Continuing the past few sessions’ theme, market players continue to shun the spate of corporate results which were largely lacklustre.
This resulted in market breadth becoming mixed-to-negative with lower liner indices being mostly in the red. Traded volumes thinned further to just 2.5 billion shares exchanging hands.
Near-term market conditions are likely to remain insipid due to the lingering tariff headwinds and availability of few domestic leads that could keep market players largely on the sidelines for the time being.
The on-going corporate results reporting has been uninspiring and with the results reporting approaching its conclusion, market players will be looking for other leads to decide on their investment decisions, failing which they will continue to avoid the market for the time being.
As such, the listless conditions on the FBM KLCI will persist with the downside bias also likely to remain for now.
With successive technical supports giving way, the next supports are pegged at the 1,518-1,520 levels which is followed by the 1,512-1,515 levels. On the upside, the resistances are at 1,531 points and 1,536 points respectively.
Malacca Securities Research
According to the Investment, Trade and Industry Ministry (MITI), Malaysia’s digital investment pipeline hit RM59.1 bil as of April 2025, fuelled by growth in the AI (artificial intelligence) and tech sectors.
Construction remains as a top performing sector which is supported by data centre investments; the construction index has stayed above MA200 after contractors like Sunway Construction Group Bhd and Gamuda Bhd delivered strong results.
Meanwhile, we have initiated coverage on cybersecurity firm LGMS Bhd (M+ fair value: RM1.09) which stands to benefit from on-going digitalisation and the Cybersecurity Act 2024.
Investors may also consider companies with quarter-on-quarter (qoq) and year-on-year (yoy) earnings growth, including MN Holdings Bhd, 99 Speed Mart Retail Holdings Bhd and Steel hawk Bhd.
The key index continued to hover below the MA (moving average) lines with technical indicators showing negative momentum at the current juncture; the MACD histogram is trading at its negative territory while the RSI continued to hook below 50.
Resistance is anticipated around 1,538-1,543 while support is located at 1,503-1,508. – May 29, 2025
