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 failed to rebound further yesterday as follow-through buying interest fizzled out, leaving the key index to drift lower despite the announcement of a ceasefire between Israel and Iran.
Nevertheless, the losses were relatively minor as the key index stayed comfortably above the psychological 1,500 level on mild support from foreign funds.
Broader market shares, meanwhile, were mostly positive as with market breadth but traded volumes thinned below 3 billion shares for the day.
We see the Malaysian equity market remaining largely directionless over the near term even as the Middle East conflict is showing signs of easing.
As it is, the lingering concerns over the various market headwinds will continue to dictate the FBM KLCI’s movements for now, particularly with the thin market following likely to result in the key index staying mostly rangebound for now.
Nevertheless, the key index should continue to stay above the psychological 1,500 level ahead of the 1H2025 book closing, buoyed by sustained buying support from institutional players as well as the positivity from recovering global equity markets with the truce between Israel and Iran seen holding.
Meanwhile, the range-bound trend could keep the FBM KLCI within the 1,510 and 1,530 levels for now with the other support and resistance levels at 1,503 points and 1,522 points respectively.
Malacca Securities Research
In view of the ceasefire and the relief rally on Wall Street, we believe the overall local market conditions may turn positive.
We are positive on the construction, utility and solar sectors, underpinned by Tenaga Nasional Bhd’s grid upgrades to support rising data centre demand, JS-SEZ (Johor-Singapore Special Economic Zone) initiatives and the nation’s renewable energy shift under the NETR (National Energy Transition Roadmap) masterplan.
Meanwhile, investors may also consider Kelington Group Bhd which staged a flag formation breakout yesterday for it holds an outstanding order book of RM1.43 bil according to its latest quarterly results.
The group has also secured RM390 mil in new contract wins in 1Q 2025 and tendered for ultra-high purity projects in Europe.
The key index continued to trade below the MA (moving average) lines with technical indicators showing mixed signals; the MACD histogram is recovering the negative territory while the RSI is hovering below 40.
Resistance is anticipated around 1,529-1,534 while support is located at 1,494-1,499. – June 25, 2025
