Berjaya Research
Malaysian stocks lost further ground yesterday as foreign selling escalated, sending the FBM KLCI below the 1,520 level and to its lowest in three weeks.
Index-linked stocks endured further sell-down as the deadline for the implementation of 25% tariff on Malaysian exports to the US draws nearer with no agreement reached as yet.
The selling also extended to the broader market with all Bursa sector indices in the red and market breadth was decidedly negative as losing stocks dominated trades.
Near-term market conditions are turning more cautious following the past two day’s sell-down with uncertainties over the outcome of the negotiations with the US on the tariff on Malaysia’s export to the former to continue dominating sentiments ahead.
This means the FBM KLCI is likely to dither further with the key index’s weakness may prolong after it failed to find support.
With successive support levels breached, the FBM KLCI may now head towards the next psychological support at the 1,500 level with the ensuing support pegged at 1,495 points. The hurdles, meanwhile, are at the 1,518-1,520 levels, followed by 1,525 points
Malacca Securities Research
Taking the lead from Wall Street’s overnight performance, buying interest may emerge on the local bourse.
We also like selected technology stocks following the positive developments in global chip export policies.
Meanwhile, the utility segment will remain favourable amid Tenaga Nasipnal Bhd’s capex roll-out for grid-upgrading work; we like KJTS Group Bhd, MN Holdings Bhd and Southern Cable Group Bhd.
For a more defensive approach and in light of Bank Negara Malaysia’s (BNM) recent OPR (overnight policy rate) cut, we continue to favour REITs as their dividend yields offer an attractive premium against government bonds.
The local bourse closed lower on Wednesday with momentum turning negative at the current juncture as the MACD Histogram remained in the negative territory while the RSI has dipped below the 50 level.
Resistance is anticipated around 1,526-1,531 while support is located at 1,491-1,496. – July 17, 2025
