BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI mounted a late rebound to end its downward streak yesterday, boosted by end-of-day bargain hunting on selected index linked stocks.
For much of the day, the key index was in the negative territory as mild selling still dominated trades.
Nevertheless, the lower liners were mostly higher on mild bargain hunting, allowing for the overall market breadth to remain positive.
At the same time, the slight pick-up in buying interest saw traded volumes climbing back above 3 billion shares for the day.
Yesterday’s recovery was welcomed to break the recent weak market spell that was brought about by the hefty tariffs imposed on Malaysian goods imported into the US.
For the most part, however, Malaysian equities have showed resilient as the tariffs may not be permanent.
This has raised hopes that the tariffs may be lowered if the government-to-government negotiations are successful.
Despite yesterday’s market bounce, fresh buying interest is tepid as most investors are still on the sidelines, awaiting for more clarity on the tariffs.
As such, quick profit taking may emerge that could see the key index surrendering some of yesterday’s gains but with the selling pressure still light, the downsides may be limited.
The supports are at 1,530 points and at 1,523 points respectively while the immediate resistance is at 1,544 points with the next resistance set at the 1,550 psychological level.
Malacca Securities Research
We believe the buying support may spill-over to local bourse, especially the technology sector, in view of sustained semiconductor rally.
After Bank Negara Malaysia’s (BNM) decision to reduce the OPR (overnight policy rate) by 25bps, we believe investors may monitor the property sector as a lower interest rate environment may boost the property market sentiment with Eco World Development Group Bhd being one of our favourites.
We also favour the utilities sector due to data centre investments across the country, Tenaga Nasional Bhd’s power grid upgrades and RE (renewable energy) policies like the NETR (National Energy Transition Roadmap) with our top picks including MN Holdings Bd and UUE Holdings Bhd.
Lastly, A1 AK Koh Group Bhd (M+ Global target price: 27 sen) will be listed on the ACE Market today.
The local bourse snapped its losses and closed above both EMAs but technical indicators are showing mixed signals. The MACD histogram has expanded into the negative territory while the RSI is still hovering above the 50 level.
Resistance is anticipated around 1,551-1,556 while support is located at 1,516-1,521. – July 1, 2025
