BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Late buying interest in selected banking and PETRONAS-linked heavyweights lifted the FBM KLCI to end in the positive territory on Wednesday, thus allowing the key index to defend the 1,520 level ahead of the closing bell.
As a result, the local bourse snapped a three-day losing streak. Nevertheless, market sentiment remained cautious with trading volumes contracted to 2.7 billion shares, down from 3.3 billion shares in the previous session amid the risk-off sentiment.
As we approach the eve of the trade negotiation deadline, the likelihood of Malaysia securing a trade deal appears increasingly slim which may continue to weigh on market sentiment.
We believe market participants will continue to adopt the wait-and-see approach as investors will also be keeping a close tab onto the tabling of 13th Malaysia Plan (13MP) in the Dewan Rakyat later today.
Meanwhile, the hawkish tone delivered by. US Federal Reserve Jerome Powell over interest rate direction may not augur well for the equities market.
For now, we expect an extended period of consolidation with selectively accumulation in recently beaten-down stocks.
Technically, the FBM KLCI has formed a dragonfly doji candlestick and closed marginally higher as the key index is likely to remain range-bound in the near term as investors await clearer directional catalysts. Near-term resistance is located at 1,540, followed by 1,550 while immediate support is pegged at 1,511 and 1,503 respectively.
Malacca Securities Research
Despite the Wall Street’s mixed performance, we expect the local bourse to start on a more positive tone, supported by Meta’s and Microsoft’s results.
However, we expect the upward move to be limited as it is nearing the Aug 1 deadline on trade deals.
Nevertheless, traders may focus on energy stocks like Deleum Bhd and Hibiscus Petroleum Bhd given the recent spike in Brent oil prices.
Elsewhere, renewed buying interest may be seen in industrial products & services after JPMorgan Chase’s upgrades on Petronas Chemicals Group Bhd’s which eventually may boost the trading interest in Lotte Chemical Titan Holding Bhd .
Besides, we like AutoCount Dotcom Bhd for its strong net cash and high prospective dividend yield of more than 5%.
The local bourse reversed its three-day losing streak to eke out marginal gains on Wednesday with technical indicators showing mixed signals at the current juncture as the MACD histogram has expanded above zero while the RSI continued to hover below 50.
Resistance is anticipated around 1,539-1,544 while support is located at 1,504-1,509. – July 31, 2025
