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 mounted a rebound yesterday to stay above the psychological 1,500 level on mild bargain hunting activities by domestic funds to offset the continuing selling by foreign institutions.
The recovery which was also in tandem with the gains among regional indices permeated to the broader market, allowing many stocks to post gains albeit their recovery was modest.
Consequently, total losers were still slightly ahead of gainers with volumes slipping further to just 2.4 billion shares.
Although yesterday’s rebound was welcomed to break the downward streak, near term market conditions remain mostly subdued, hampered by the continuing concerns over the state of the Malaysian and global economic outlook due to the prolonged trade disputes between the US and its major trading partners.
This is readily manifested by the lower market interest with the near-term outlook remaining uncertain as foreign funds are still reducing their exposure to Malaysian equities.
With the lingering market concerns, the FBM KLCI is likely to remain subdued and could become range-bound for now by aiming to just stay above the 1,500 level.
If this level gives way, the ensuing supports are at 1,492 points and 1,486 points while the hurdles remain at 1,512 and 1,521 points respectively.
Malacca Securities Research
Given the mixed performance on Wall Street, we expect the local bourse to trade on a choppy note.
The FBM KLCI is trading around 14x P/E (price-to-earnings ratio), a discount to its long-term average of 17x.
With the anticipation of more project launches this year and active land banking efforts by Gamuda Bhd, we remain positive on construction stocks like Inta Bina Group Bhd which has high exposure to major construction companies.
Also, we favour sub-utility companies like MN Holdings Bhd given rising power demand from data centre investments and the shift toward renewable energy as well as Tenaga Nasional Bhd’s on-going capex plans.
The key index closed higher but still traded below the MA (moving average) lines with technical indicators showing negative momentum at the current juncture; the MACD histogram has expanded negatively while the RSI is approaching an oversold level.
Resistance is anticipated around 1,522–1,527 while support is located at 1,487–1,492. – June 5, 2025
