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 on a firm note, recovering strongly from a weak start to the day to register solid gains on renewed buying on selective index-linked constituents that also sent the key index above the 1,510 level.
The gains also allowed FBM KLCI to buck the regional indices’ mostly soft showing due to the heighted geopolitical conflicts in the Middle East.
Nevertheless, the broader market was a sea of red with total losers beating gainers nearly on a 3-to-1 ratio 2ith traded volumes rising to 3.1 billion shares.
Despite the FBM KLCI casting aside the concerns over the escalating Middle East conflict yesterday, we continue to see cautiousness in its near-term market outlook due to prevailing uncertainties that is likely to keep overall sentiments in check with market conditions to also stay fluid.
Nevertheless, with the key index finishing in a better stead yesterday, this provides some breathing room for investors from the on-going market uncertainties.
At the same time, there has been a slight easing of the selling pressure from foreign funds which is permitting the key index to find support at the 1,500 level and to also potentially build up a firmer base.
Consequently, the FBM KLCI may continue to build up a base to fortify its position above the 1,500 level while casting aside the lingering geopolitical and economic concerns.
The slight upside bias could also remain for now with the key index potentially targeting 1,520 points and 1,528 points ahead. On the downside, the supports are at 1,512 points and 1,507 points respectively.
Malacca Securities Research
Despite the on-going geopolitical tensions, we remain optimistic about the construction sector, supported by data centre investments and JS-SEZ (Johor-Singapore Special Economic Zone) initiatives.
According to Menteri Besar Datuk Onn Hafiz, Johor has already secured RM30.1 bil in approved investments in 1Q 2025 and now needs about RM70 bil more in the remaining nine months to reach its RM100 bil target with the state banking on its JS-SEZ initiative.
Meanwhile, investors can also look forward to the Cuckoo International (MAL) Bhd’s initial public offering (IPO) (M+ Global target price: RM1.53) which is set to be listed on the Main Market today (June 24).
The company has announced a strategic collaboration with Samsung for smart home solutions.
Despite its positive closing, the key index is still resisted below the MA (moving average) lines with technical indicators showing mixed signals; the MACD histogram is trading at its negative territory while the RSI hooked up above 40.
Resistance is anticipated around 1,531-1,536 while support is located at 1,496-1,501. – June 24, 2025
