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 posted modest gains to start the week on a positive note on optimism over a potentially encouraging outcome from the US-China trade negotiation overnight with the key index also rising alongside most key regional indices.
The positivity also extended to many broader market shares with technology-related stocks making the most headway. There was also a noticeable pick-up in traded volume although it remained below 3.0 billion shares.
At the same time, gainers also topped losers for the day.
The key index appears to have found support just above the psychological 1,500 level and is likely to remain so over the near term.
This is as market players continue to wait for the outcome of the on-going trade talks between the US and China that is still at an impasse as the overnight negotiations were inconclusive.
Even so, the FBM KLCI is likely to be heading higher as the mild upside bias could remain over the near term, partly buoyed by the optimism that a trade deal could be reached between the two sides.
At the same time, the easing selling pressure should allow for more bargain hunting to emerge for now. On the upside, there are resistances at the 1,523-1,525 levels and 1,530 points respectively.
The supports, meanwhile, are at 1,510 and 1,503 points respectively.
Malacca Securities Research
Given Wall Street’s mixed performance, we expect the local bourse to trade with a softer tone.
Attention may shift to fundamentally strong companies as investors seek buying opportunities.
We favour Inta Bina Group Bhd in view of its strong ties to major developers like Gamuda Bhd.
Amid a rate-cut environment, REITs could attract interest due to their healthy yields of over -4%. We believe Sunway REIT presents a decent opportunity in view of its recent breakout and its uptrend intact share price movements.
The key index closed higher but still 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 is below the 50 level.
Resistance is anticipated around 1,534-1,539 while support is located at 1,499-1,504. – June 10, 2025
