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 rebounded yesterday, closing near the 1,520 level as market conditions were buoyed by a truce between Israel and Iran that also bolstered optimism for a more permanent ceasefire.
Although the key index ended the day off its highs on late profit taking, the lower liners sustained their uptrend on continuing bargain hunting that saw the day’s traded volumes rising to 3.1 billion shares.
Expectedly, there were also more gaining stocks compared to losing ones for the day.
Despite the easing geopolitical environment in the Middle East, we continue to see few compelling buying opportunities among Bursa Malaysia stocks as there remains cautiousness over its near-to-mid-term direction.
As it is, overall market sentiments are still guarded due to lingering concerns over the state of the global economy, particularly as the deadline for the negotiations on the US tariffs draws close.
There is still little meaningful progress on the negotiations which is keeping investor confidence in check.
Consequently, the key index is likely to maintain its mostly range-bound trend with mild upside bias for now as minor bouts of bargain hunting could still lift the key index ahead of the 1H 2025 book closure.
On the upside, the resistances are at 1,522 points and 1,530 points while the supports are still at 1,515-1,518 points and 1,510-1,512 points respectively.
Malacca Securities Research
As the FBM KLCI formed a bullish engulfing candle formed on Monday, buying interest has re-emerged in blue-chip counters as the local bourse is currently trading at a P/E multiple of 14.0x (five-year average: 16.5x).
The REITs sector also experienced a strong surge yesterday, led by gains in IGB REIT following its plan to acquire the Mid Valley Southkey Mall with seven “buy” calls and a consensus target price of RM2.48 shown on Bloomberg.
Lastly, we continue to favour Kelington Group Bhd which saw a breakout continuation pattern and currently holds an outstanding order book of RM1.43 bil.
Despite the positive closing, the key index is still trading below EMA60 with technical indicators showing bullish signals; the MACD histogram has expanded above zero while the RSI is trading above 50.
Resistance is anticipated around 1,534-1,539 while support is located at 1,499-1,504. – June 26, 2025
