BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the key index was in the positive territory for much of the day, a late selling sent the key index lower yesterday albeit the losses were relatively minor.
Nevertheless, the FBM KLCI’s performance was largely subdued due to the lack of leads that left the overall market conditions on a mixed note as market players are still awaiting the outcome of the trade negotiations between the US and China.
Total gainers and losers were nearly on parity with key lower liner indices ending the day unchanged.
There remains a lack of direction among the key index constituents as notable leads are still far and in-between to drum up meaningful fresh buying interest, particularly as corporate earnings outlook among Bursa Malaysia stocks are becoming more challenging due to on-going trade uncertainties.
At the same time, there are also few leads from overseas with the US-China trade talks taking longer than expected.
Nevertheless, conditions could improve as the two countries look to temper some of the trade tensions following yesterday’s talks which could allow the key index to stay mildly positive for now even as the key index could linger within a tight range between the 1,510 and 1,525 levels.
There is interim support and resistance at the 1,513 and 1,521 points respectively.
Malacca Securities Research
With the FBM KLCI trading at a discounted P/E of ~14x (long-term average: 17x), the local bourse is poised to open higher, tracking Wall Street resilient overnight performance.
Also, the highly anticipated US-China trade talks may buoy sentiment for the Technology sector with key focus on sub-sectors tied to EMS (electronics manufacturing services) and possibly E&E (electrical & electronics).
Do note that the tech sector index has rebounded more than 30% throughout the past two months.
For a more defensive play, we like Sunway REIT as Bloomberg consensus anticipates DPU (distribution per unit) growth driven by active asset acquisitions.
Also, the REIT sector has a healthy ~3% YTD (year-to-date) performance and stable dividend payouts.
The key index closed lower and still traded below the 20/60/120-MA (moving average) lines with technical indicators showing recovering momentum at the current juncture; the MACD histogram has recovered towards 0 (zero) while the RSI is slightly below 50.
Resistance is anticipated around 1,531-1,536 while support is located at 1,496–1,501. – June 11, 2025
