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 firm rebound yesterday with sentiments buoyed by progress in the US-China trade negotiations that now await the nod from their respective presidents.
Once again, the renewed interest in YTL Corp Bhd and YTL Power International Bhd was the main catalyst for the key index’s ascend with the positivity also extended to lower liners where total gainers were ahead of losing ones.
Construction stocks led the gains in the broader market as traded volumes also picked up to pass the 3 billion shares mark.
Although there is cheer over a potential US-China trade deal, the tariff angst is not over yet after President Trump threatened unilateral tariffs on some countries ahead of the July end of the 90-day tariff pause that is likely to keep market sentiments on the edge for longer.
The uncertainties could again place a drag on market performances albeit the FBM KLCI could instead trend within a tight band until there are more developments on the tariff front.
As it is, the selling pressure is milder due to the continuing wait-and-see stance which could provide some near-term stability to the key index.
With the latest tariff developments, the key index could surrender some of yesterday’s gains as the 1,525 may remain a major resistance.
Below that, the supports are at 1,520 points and 1,516 points respectively. The resistance, on the other hand, are at 1,530 and 1,535 points respectively.
Malacca Securities Research
Mirroring Wall Street’s negative performance, the FBM KLCI may trade on a softer tone.
However, we remain positive on the construction sector, especially Sunway Constriction Group Bhd following its recent RM1.16 bil project win which boost its outstanding order book to ~RM7.90 bil (a cover ratio of >2x FY2024 revenue).
Traders may also focus on the oil & gas (O&G) sector amid rising crude oil price due to escalating geopolitical tension between US-Iran.
Aside from healthy dividend payouts, we favour Sunway REITs for its active asset acquisition activities and defensive characteristics in weathering economic uncertainties.
The key index closed higher but still traded below the 20/60/120-MA (moving average) lines with technical indicators showing recovering momentum; the MACD histogram has recovered to the positive zone while the RSI is approaching 50.
Resistance is anticipated around 1,538-1,543 while support is located at 1,503-1,508. – June 12, 2025
