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 started the week with minor losses after it managed to recoup most of its intraday losses at the close.
For much of the day, market conditions were left without a direction amid fresh uncertainties over a new round of US tariffs that left investors on the sidelines.
Broader market conditions were also insipid as profit taking took hold, resulting in technology stocks emerging as the day’s biggest loser and losing stocks being ahead of gaining ones.
Market conditions are likely to stay listless for now due to the lack of impetuses to spur fresh buying interest.
The on-going results reporting season has failed to generate many catalysts with this leaving more market players to stay on the sidelines awaiting firmer leads to emerge.
Furthermore, the lingering tariff concerns is also causing investors to be guarded for the time being albeit postponement of the new round of tariffs poses no additional risk to the trading environment.
Under the prevailing environment, cautiousness is likely to prevail with the FBM KLCI likely to keep a sideway trend to hover between the 1,530 and 1,540 levels for now. The other support and resistance levels are at 1,527 points and 1,545 points respectively.
Malacca Securities Research
The market may face further weakness amid continued foreign fund outflows.
We expect the market to adopt a defensive stance with the momentum in REITs to persist given rising geopolitical tension and the wait for more clarity from the Trump administration
Several banking stocks have posted growth in their net interest income, including Malayan Banking Bhd, AMMB Holdings Bhd and MBSB Bhd, hence their share prices may react positively.
Investors may continue to monitor IJM Corp Bhd which recently secured the RM1.4 bil New Pantai Expressway extension project from the government and the extension of the current toll concession which ends in 2030.
The key index continued to retrace below the MA (moving average) lines with technical indicators showing weak momentum at the current juncture; the MACD histogram is expanding into a negative territory while the RSI continued to hook below 50.
Resistance is anticipated around 1,549-1,554 while support is located at 1,514–1,519. – May 27, 2025
