BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI reversed all its intraday gains to edge lower for the fifth straight, dragged down by selling pressure among telco heavyweights.
Trading activity moderated with 3.85 billion shares exchanging hands, down from 4.94 billion shares in the previous session.
Market breadth turned negative with 702 decliners outpacing 517 advancers, implying the broad-based selling activities have yet to subside.
Looking ahead, the FBM KLCI could remain cautious amid rising external uncertainties. Investor sentiment is likely to remain subdued following the USTR’s announcement of additional tariffs on 60 countries, including Malaysia which could raise concerns over the outlook for global trade and export-oriented sectors.
At the same time, lingering uncertainty surrounding US-Iran trade and diplomatic negotiations continues to cloud the broader geopolitical landscape alongside renewed volatility on Wall Street overnight, potentially fuelling risk-off sentiment across regional markets.
Technically, the key index formed another bearish candlestick after reversing all its intraday gains.
With the 1,675 points support giving way, the next supports are pegged at the 1,665 and 1,650 points respectively. On the flipside, near-term resistances are located at 1,688 points, followed by the 1,700 psychological level.
Malacca Securities Research
Given the continued sell-down in the FBM KLCI, we view this as a buy-on-the-dip opportunity for banking stocks, particularly Malayan Banking Bhd (DY: 6.1%) and CIMB Group Holdings Bhd (DY: 6.5%).
Meanwhile, with the rebound in oil prices following the latest flare-up in the Middle East, oil plays such as Hibiscus Petroleum Bhd and Hengyuan Refining Company Bhd are poised for a breakout.
Lastly, Sum Technology Bhd, a turnkey engineering solutions provider for critical environments such as cleanrooms, M&E (mechanical and electrical engineering) and process utility systems will close its IPO (initial public offering) applications today.
Tracking the overnight dip on Wall Street, we expect the local bourse to extend its selling pressure today.
The FBM KLCI extended its selling pressure with its technical indicators showing negative momentum at this current juncture as the MACD histogram is still trading in the negative territory while the RSI has broken below 30.
Resistance is seen around 1,687-1,692 with support at 1,652-1,657. – June 4, 2026
