Bursa market outlook: *Lift off!*
Asian stock markets retreated from fresh highs after an exchange of fire between US and Iran casting doubt over the ceasefire. The local benchmark FBMKLCI (KLCI), however, bucked the regional trend, climbing another 7.66pts or 0.44% to end the day at 1,747.43. Most sectors closed higher for the day with healthcare (+0.82%), industrial production (+0.74%) and property (+0.67%) leading the gainers. FBMACE (-0.75%), construction (-0.36%) and consumer products (-0.28%) were the top laggards. Trading volume fell to 2.86bn (down from 3.06bn previously) but trading value inched a tad higher to RM2.59bn (up from RM2.55bn previously). Market breadth turned negative again as 539 gainers lost out to 605 decliners.
The bulls managed to lift the benchmark to a new 2-month high despite early profit-taking activities yesterday, forming its second white candle. As mentioned previously, closing above overhead resistance at 1,737-1,740 would likely put the index on course for 1,761 and the 6.5year high of 1,771 thereafter. We believe that the current move is bullish and more strength lie ahead for the KLCI. We would not be surprised if the index continued its push towards the 1,800 psychological level. The bears need to drag the KLCI to close below 1,714 to derail the current bullish scenario. Minor support is at 1,706 and 1,695. NOTE: Our portfolios switch to *risk-on mode* this week.
Gainers: 539
Losers: 605
Unchanged: 599
DOW: 49,298.25 (0.73%)
S&P500: 7,259.22 (0.81%)
NASDAQ: 25,326.13 (1.03%)
FTSE100: 10,219.11 (-1.40%)
DAX: 24,401.70 (1.71%)
HSI: 25,898.61 (-0.76%)
STI: 4,920.61 (-0.08%)
KLCI: 1,747.43 (0.44%)
USD: 3.9613 (0.13%)
AUD: 2.8379 (-0.33%)
SGD: 3.1030 (-0.02%)
EUR: 4.6315 (-0.08%)
GBP: 5.3646 (0.00%)
JPY: 2.5093 (-0.26%)
CNY: 0.5802 (0.16%)
HKD: 0.5056 (0.10%)
WTI: 102.27 (-3.90%)
Brent: 109.87 (-3.99%)
GOLD: 4,556.92 (0.77%)
3rd MONTH FCPO: 4,710.00 (1.90%)
Msia 10 yr bond yield: 3.57 (0.37%)
US 10 yr bond yield: 4.42 (-0.32%)
Bitcoin Futures: 81,845.00 (1.54%)
Source: Bloomberg
*6th May 2026*
Disclaimers: This distribution is by CGS International Securities Malaysia Sdn. Bhd. (“CGS MY”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CGS MY, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
