BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The key index lost ground yesterday as selling pressure mounted again to send the key index below 1,530 at the close.
Selling activity was prevalent among selected index-linked stocks like Gamuda Bhd and Mr D.I.Y Group (M) Bhd with the FBM KLCI also ended the day at its intraday low to buck the gains among key regional indices.
In the broader market, stocks were also weaker as profit taking emerged, leaving market breadth in the negative territory. Traded volumes rose slightly to above the 3 billion shares mark.
Yesterday’s decline has reversed some of the stability that permeated the key index since the start of the month, suggesting that the buying support may be waning.
As a result, market conditions could become softer again as investors tune back to the tariff concerns ahead of the August deadline.
This could also leave the FBM KLCI to drift once more as market players look for new impetuses, particularly as there are fewer compelling buying opportunities for the time being.
This could also see the 1,520-support level re-tested again and if it gives way, selling could escalate with the next psychological support of 1,500 level to be in play.
For now, however, we think that the key index could attempt to find some stability around the 1,520 and 1,530 levels with the other support and resistance levels pegged at 1,512 points and 1,536 points respectively.
Malacca Securities Research
Following Wall Street’s downbeat performance, the local bourse could start on a weaker tone.
However, we believe the overall situation may favour the technology stocks with the resumption of chip sales in China.
The tech sector on the local front may see decent buying interest with Wentel Engineering Holdings Bhd benefitting from uncertain US trade policies which may translate to greater demand for the security screening industry.
On a more defensive note, we like the REIT sector on the back of the recent OPR (overnight policy rate) cuts by Bank Negara Malaysia (BNM) while the consumer sector may benefit from down-trading activities as inflationary pressures remain sticky.
Following Wall Street’s downbeat performance, the local bourse could start on a weaker tone.
It closed lower on Tuesday with momentum turning negative at the current juncture as the MACD histogram has expanded into negative territory while the RSI is hovering below the 50 level.
Resistance is anticipated around 1,540-1,545 while support is located at 1,505-1,510. – July 16, 2025
