BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Tracking the gains on Wall Street overnight, the FBM KLCI staged a recovery on Tuesday, regaining its positive performance.
Gains were recorded in approximately two-thirds of the FBM KLCI’s constituent stocks, reflecting widespread optimism and positive momentum across several sectors such as oil & gas (O&G) and utilities.
Trading volumes climbed to 2.9 billion shares from 2.6 billion shares in the previous session, signalling a modest uptick in investor participation.
While the local bourse is attempting to mount a firmer recovery, we believe that further upside may remain limited in the near term due to the lack of fresh domestic catalysts.
Market participants could remain cautious, awaiting clearer signals from macro-economic indicators and upcoming barrage of corporate earnings later this month to sustain any meaningful rally.
On a side note, foreign institutional investors remain in a net selling position for the eighth consecutive session, suggesting further upsides could be measured as well.
We keep our view that the key index may continue to trade on a range-bound pattern with the immediate resistance presented at 1,540 points and subsequently at 1,550 points.
Downside wise, near-term support is at 1,511 points with a stronger support level situated at the psychological threshold of 1,500 points.
Malacca Securities Research
Following the dip in the US, we believe the local bourse will turn slightly cautious today.
Meanwhile, with the strong emphasis on AI (artificial intelligence) development, green energy and digital transformation under the 13MP (13th Malaysia Plan), we continue to stay bullish towards the utilities, construction, telecommunication and renewable energy sectors.
Stocks like YTL Power International Bhd, Tenaga Nasional Bhd, IJM Corp Bhd, TIME dotCom Bhd, Gas Malaysia Bhd and Solarvest Holdings Bhd remain as our top picks within these segments.
Lastly, for a more defensive approach, investors may start accumulating banking stocks to capitalise on their attractive dividends for long-term investment purposes.
The local bourse snapped its one-day loss with technical indicators showing mixed signals at the current juncture; the MACD histogram has expanded below zero while the RSI is trading above 50.
Resistance is anticipated around 1,553-1,558 while support is located at 1,518-1,523. – Aug 6, 2025
