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 succumbed to an end-of-day sell-off on some index heavyweights last Friday (May 30) that sent it to the lowest level in five weeks with foreign funds continuing to offload their positions.
Market conditions also cooled amid the renewed tariff concerns after President Trump rachet up fresh tariffs that also sent many regional indices into a tailspin.
Most lower liners were also in the red as selling intensified, leaving total losers nearly twice the number of gainers for the day.
With global equity markets reeling from the heightened trade disputes between the US and its major trading partners, the cautiousness is expected to remain on Bursa Malaysia that would again leave the key index on its drifting trend at the start of the holiday shortened week.
Already sentiments are indifferent due to the lack of excitement in the recently concluded corporate results reporting season and the heightened global trade headwinds could send more market players to the sidelines until more stability is found.
Despite the key index’s oversold conditions, there are still few signs of a reversal as yet with the FBM KLCI set to dip further with the immediate supports now at the 1,500-1,505 levels. If this level also gives way, the other supports are at 1,493 and 1,486 points,
Malacca Securities Research
While last week saw moderate progress in de-escalating trade tensions, President Trump’s additional 25% tariff hike on steel and aluminium imports has reignited uncertainty.
Given prolonged trade tensions, we see expect investors to adopt a defensive stance, favouring consumer heavyweights like Eco-Shop Marketing Bhd and 99 Speed Mart Retail Holdings Bhd which have built self-reinforcing moat through convenience and competitive pricing.
Also, with major developers pursuing land banking, we believe Inta Bina Group Bhd stands to benefit significantly due to its high exposure to firms like Gamuda Bhd, Sime Darby Bhd and many more.
The key index extended its losses and 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 continued to hook below 50.
Resistance is anticipated around 1,523–1,528 while support is located at 1,488–1,493. – June 3, 2025
