BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its winning streak to a third consecutive session on Tuesday, lifted by second half buying interest in selected index heavyweights.
Trading activity, however, moderated to 2.86 billion shares from 3.06 billion shares in the previous session.
Market breadth also turned negative with 605 decliners nudging 539 advancers, suggesting that the index-level gains were largely driven by selective buying in heavyweight counters.
Looking ahead, the FBM KLCI is likely to remain range-bound with any upside capped by thin market breadth and selective buying interest confined to index-linked heavyweights.
Sentiment is likely to be shaped by external developments with market participants keeping a close watch on the Eurozone’s Producer Price Index (PPI) data due later in the week.
A softer than-expected PPI print could ease inflation concerns and provide a mild lift to risk appetite globally while an upside surprise may reinforce expectations of a prolonged higher-for-longer interest rate environment in Europe.
Technically, the local bourse has formed another bullish candlestick and is likely to head towards the immediate resistances at 1,750-1,760 points. Meanwhile, the support is pegged at 1,730 points, followed by the 1,720 points.
Malacca Securities Research
Tracking Wall Street’s overnight rebound, we anticipate the FBM KLCI will follow suit.
While the market is generally concerned that the closure of the Strait of Hormuz and rising fuel costs will negatively impact the shipping industry, we remain fundamentally optimistic on MMTT Shipping and Logistics Bhd.
The group is able to pass on higher fuel costs to customers through bunker adjustment factors even though its operations primarily focus on domestic and Southeast Asian shipping lanes rather than the Middle East.
Lastly, SkyeChip Bhd (M+ target price: RM 1.48) and EI Power Bhd (M+ target price: 66 sen) will close their IPO (initial public offering) applications today.
The FBM KLCI rebounded with technical indicators showing positive signals at this current juncture as the MACD histogram is trading in a positive territory while the RSI is also nearing 70.
Resistance is seen around 1,762-1,767 with support at 1,727-1,732. – May 6, 2026
