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 was virtually unchanged at the close of yesterday’s trading session as it lingered around the 1,510 level for much of the day.
For the most part, market conditions were moribund due to the lingering geopolitical concerns in the Middle East, hence leaving the key index to drift.
In the broader market, trading was mixed with market interest remaining thin as most market players were still on the sidelines.
As a result, traded volumes slipped to just 2.4 billion shares while market breadth was still in the negative territory.
With fewer impetuses available coupled with lingering concerns over the on-going conflict in the Middle East, conditions on the FBM KLCI are likely to remain subdued.
As it is, the key index has been in a drifting mode of late due to the lack of investor interest with this trend likely to stay for now, particularly among foreign investors that are persistent net sellers amid the mostly cautious market undertone.
Nevertheless, the key index should be able to remain above the psychological 1,500 level as the selling pressure is relatively benign with mild buying support from domestic players allowing the FBM KLCI to continue building up a base around the 1,510-1,520 levels.
Beyond these levels, the other support and resistance remain at 1,507 points and 1,517 points respectively.
Malacca Securities Research
Tenaga Nasional Bhd’s RM43 bil commitment to upgrade the national grid which is driven by rising data centre demand and the nation’s renewable energy transition has reinforced our positive stance on the utility, construction and solar sectors.
MN Holdings Bhd recently secured a RM39.6 mil contract to expand a data centre’s cable landing station’s electrical supply system.
Meanwhile, Solarvest Holdings Bhd secured a 25-year PPA (power purchase agreement) with the Brunei government for a 30MWac solar plant, the largest of its kind in Brunei.
Investors may also consider the upcoming IPO (initial public offering) of ASM Automation Group Bhd (M+ fair value: 21 sen) which application closes today.
The key index continued to hover below the MA (moving average) lines with technical indicators showing signs of slowing down; the MACD histogram has turned negative while the RSI is pointing downward.
Resistance is anticipated around 1,526-1,531 while support is located at 1,491-1,496. – June 19, 2025
