BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Malaysian equities edged slightly higher on Friday, trimming some of the week’s earlier losses in line with broadly positive performance across regional markets.
The improvement in market sentiment coupled with a stronger-than-expected advance estimate of Malaysia’s 2Q 2025 GDP (gross domestic product) has prompted investors to re-balance their portfolios.
As a result, the FBM KLCI climbed to just above the 1,525 mark. Lower-tier stocks also gained ground, driven by continued bargain-hunting activities.
Meanwhile, overall trading volume remained relatively steady at 3.2 billion shares, unchanged from the previous session.
Global markets responded positively to greater clarity from President Trump regarding tariff plans affecting over 150 countries although we remain cautious as the tariff deadline approaches.
Malaysia remains exposed to the risk of a 25% tariff on exports to the US. Still, the clearer direction on trade policies and a recent return of foreign funds into emerging markets, Malaysia included, have aided the recent recovery.
Looking ahead, investor focus will remain on tariff developments and the current US corporate earnings season.
From a technical stand-point, calmer sentiment may help the FBM KLCI sustain its recovery momentum with immediate resistance seen at the 1,530-1,535 range. On the downside, key support levels are located at 1,511 and 1,500 respectively.
Malacca Securities Research
Malaysia recorded GDP growth of 4.5% year-on-year (yoy) in 2Q 2025 to beat Bloomberg’s median forecast of 4.2%, driven by strength in the services sector.
However, growth momentum may moderate in 2H 2025 amid Trump’s tariff headwinds and the SST (Sales and Service Tax) expansion.
Nevertheless, we continue to favour the construction and utilities sectors, supported by the on-going data centre investment boom and infrastructure developments.
The recent OPR (overnight policy rate) cut also bodes well for the REITs sector whereby we have initiated coverage on IGB Commercial REIT (M+ Global target price: 70 sen).
Investors may also consider Northern Solar Holdings Bhd which could benefit from LSS (large scale solar) projects and CRESS (Corporate Renewable Energy Supply Scheme).
Despite closing higher on Friday, the local bourse is still trading below the MA (moving average) lines with technical indicators showing mixed signals whereby the MACD histogram has approached zero while the RSI is still hovering below 50.
Resistance is anticipated around 1,540-1,545 while support is located at 1,505-1,510. – July 21, 2025
