BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI began the week on a cautious and uneven footing, fluctuating between gains and losses throughout the trading session.
Market sentiment was dampened Bank Negara Malaysia’s (BNM) move to revise its 2025 growth forecast to 4.0%-4.8%, down from its earlier projection of 4.5%-5.5% in response to evolving global economic conditions, thereby reinforcing concerns over slowing economic momentum.
Despite the subdued tone, trading volume edged higher to 3 billion shares, up from 2.9 billion in the previous session as selling pressure intensified amid the weak macro backdrop.
Amid the prevailing trade optimism across global markets, the FBM KLCI continues to lag its regional peers, weighed down by persistent uncertainties surrounding the ongoing US-Malaysia trade negotiations.
As the deadline for a potential resolution draws nearer, the lack of clarity has created a cautious undertone among market participants which we expect the local bourse to remain subdue following the downward revision of the GDP (gross domestic product) growth forecast by BNM.
From a technical standpoint, the FBM KLCI has formed a bearish candle after wiping out all its intraday gains as the key index remains within the consolidation band.
With the local bourse remaining directionless, the 1,550 will serve as the near-term resistance, followed by 1,565. On the flipside, immediate support is pegged at 1,518 points, followed by 1,511 points
Malacca Securities Research
Although we expect the market to trade sideways on the local front, traders should focus on the utilities segment with stocks such as MN Holdings Bhd, UUE Holdings Bhd and KJTS Group Bhd.
We believe these companies will benefit from Tenaga Nasional Bhd’s capex roll-out and data centre projects which may be announced in 2H 2025.
In the technology sector, we favour selected stocks with momentum at this juncture such as Frontken Corp Bhd and MI Technovation Bhd as well as thematic stock such AutoCount Dotcom Bhd which is supported by the on-going e-invoice implementation.
Besides, we expect the overall construction, property and building material sectors to perform well under the National Energy Transition Roadmap (NETR):and Johor-Singapore Special Economic Zone (JS-SEZ) catalysts.
The local bourse closed lower on Monday. However, technical indicators are showing positive signals as the MACD histogram has expanded above zero while the RSI is hovering above the 50 level.
Resistance is anticipated around 1,544-1,549 while support is located at 1,509-1,514. – July 29, 2025
