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 decline on the back of the last-minute selling across several heavyweights following the re-balancing of MSCI Index constituents.
Trading activity surged with 4.94 billion shares exchanging hands, up sharply from 3.54 billion shares in the previous session.
Market breadth, however, turned positive with 680 advancers overtaking 512 decliners, suggesting that selling pressure has somewhat begun to ease.
Looking ahead, bargain hunting activities may emerge on the FBM KLCI as the market resumes trading following the extended weekend break given the prolonged sell-off.
The broadly constructive tone across regional markets as well as the positive performance on Wall Street overnight may provide an encouraging platform for the local bourse to mount a potential rebound.
Still, cautiousness prevails after the US issued fresh sanctions on Iran. Technically, the key index has formed another bearish candlestick after reversing all its intraday gains.
As stocks are tethering near the oversold territory, bargain hunting activities could emerge and lift the local bourse towards the immediate resistance at 1,690 points, followed by the 1,700 psychological level,
On the other hand, the supports are pegged at 1,675 points and 1,665 points respectively.
Malacca Securities Research
Tracking the positive overnight performance on Wall Street, we anticipate that the local bourse will kickstart the shortened trading week on a positive note.
Meanwhile, with oil prices continuing to remain below US$100/barrel, we believe sentiment will bode well for AirAsia X Bhd and Capital A Bhd which are poised for a breakout.
Lastly, traders could also take positions in 3REN Bhd and Ranhill Utilities Bhd following their recent pullbacks with the former acting as a proxy to ride on Intel’s AI progress while the latter benefits from on-going data centre developments in Johor.
The FBM KLCI retreated further with its technical indicators are still showing negative momentum at this current juncture as the MACD histogram is still trading in the negative territory while the RSI is nearing the 30 level.
Resistance is seen around 1,698-1,703 with support at 1,663-1,668. – June 3, 2026
