BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI started Thursday on a positive note but traded in a lacklustre manner for most of the session as further upside was capped by selling pressure in telco heavyweights.
Nevertheless, the benchmark index managed to charge above the 1,540 level at the close to continue its gradual path to recovery.
The broader market turned mixed, however, with investors quick to lock-in recent gains amid the lack of clear direction.
However, trading volume eased to 3 billion shares from 3.3 billion shares in the previous session as trading activities were centred towards larger cap stocks.
With sentiment turning increasingly favourable, we believe the local bourse may look to extend its recent rebound, building on the momentum seen over the past few sessions.
Investors are still digesting the Prime Minister’s latest initiatives aimed at alleviating the cost of living which have been met with cautious optimism.
Nevertheless, lingering uncertainties surrounding the US-Malaysia trade negotiations may pose a headwind by potentially capping further upside in the near term.
From a technical stand-point, the FBM KLCI remains poised for a continued recovery after breaking above both the 1,530 and 1,540 resistance levels. The index now sets its sights on the next resistance band, located at the 1,550–1,565 zone.
On the downside, immediate support is seen at 1,518, followed 1,511 points.
Malacca Securities Research
Selectively, we are noticing uptrend formation within several sectors that are related to utilities and data centres.
Also, we opine that investors can start accumulating banking stocks for long-term positions despite the recent OPR (overnight policy rate) cut as the Bursa Finance Index has declined around 10% from the YTD (year-to-date) high.
Valuations remain attractive with the sector trading at 10x PE and 1.1x PB vs its 10-year average of 12.3x and 1.2x respectively.
We favour Malayan Banking Bhd, AMMB Holdings Bhd and RHB Bank Bhd’s attractive dividend yields.
Meanwhile, the RM100 cash hand-outs and price caps on tolls and RON95 are expected to spur short-term consumer spending with benefiting companies being the likes of 99 Speed Mart Retail Holdings Bhd, Eco-Shop Marketing Bhd and Mr DIY Group (M) Bhd.
The local bourse closed above the MA (moving average) lines with technical indicators showing positive signals. The MACD histogram has expanded above zero while the RSI is trading above the 50 level.
Resistance is anticipated around 1,555-1,560 while support is located at 1,520-1,525. – July 25, 2025
