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 retreated yesterday, largely in line with the weak conditions globally as there was no let-up in the Middle East fighting that affected market sentiments further.
This saw the key index losing traction by slipping below the 1,520 level as selling prevailed with healthcare stocks emerging as the day’s big losers.
Expectedly, market breadth was negative even as the ratio was less severe than the past few days with traded volumes picking up slightly to just over 3 billion shares.
Market conditions are likely to stay wary over the near term due to the threat of an escalating conflict between Israel and Iran.
As a result, sentiments are still cautious that could leave more market players on the sidelines for the time being as they await more calmness to emerge.
Furthermore, investors will also be on the lookout for cues on the direction of US interest rates even as the US Federal Reserve is widely anticipated to keep the rates steady for the time being.
On the key index, it could attempt to find some stability near the 1,510 level after yesterday’s retreat but fresh buying interest will remain low due to the cautious market environment.
Below the 1,510 level, the supports are at 1,507 and 1,503 points respectively while the hurdle are at the 1,516-1,516 levels and at 1,520 points respectively.
Malacca Securities Research
Given the prolonged tension between Israel and Iran, we opine that trading interest will persist in gold and oil & gas (O&G)-related counters.
With Malaysia moving up 11 spots to 23rd in the World Competitiveness Ranking which generally measures how business-friendly a country is, we believe investors should continue to look into the construction sector which is supported by data centre investments and the JS-SEZ (Johor-Singapore Special Economic Zone) initiative.
Lastly, we remain optimistic about the solar sector as many players reported increasing revenue and profits as well as expecting to benefit from the country’s renewable energy goals.
The key index continued to hover below the MA (moving average) lines with technical indicators showing signs of slowing down; the MACD histogram contracted toward zero while the RSI is pointing down.
Resistance is anticipated around 1,526-1,531 while support is located at 1,491-1,496. – June 18, 2025
