BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Despite edging lower at the opening bell, the FBM KLCI managed to recover all its intraday losses to close mildly higher on Wednesday.
The late session’s rebound is aligned with the widespread positive momentum across regional equities markets.
However, market participation was subdued as trading volume dropped to approximately 2.5 billion shares, down from 2.9 billion shares in the previous day with the broader market shares mostly in the red.
It was another encouraging session on the benchmark index which posted a modest but sustained recovery yesterday in tandem with the positive developments on Wall Street overnight to reinforce a cautiously bullish tone.
Still, the outlook remains heavily dependent on foreign fund flows with offshore investors still in a net selling position for the past nine consecutive sessions, underscoring the fragility of the current rally.
Economic-wise, investors will be keeping a close watch on the release of Malaysia’s Industrial Production data later today which will shed light on the health of the manufacturing, mining and electricity sectors.
Having cleared short-term resistance at 1,540 points, the FBM KLCI may now look to extend its recovery with potential upside targets at 1,550 points and subsequently at 1,566 points, if the positive momentum is sustained.
Conversely, near-term support lies at 1,525 points, followed by 1,511 points.
Malacca Securities Research
Despite the recovery in the US coupled with the rate cut expectation in September, we expect market to stay cautious after President Trump plan to impose 100% tariff on imported chips.
Sector-wise, the construction and utilities sectors should be benefiting from data centre developments and mega infrastructure projects in the country while the recent OPR (overnight policy rate) cut may boost interest in REIT and property counters such as Sunway REIT, IGB REIT and Eco World Development Group Bhd.
Despite the sell-down in the healthcare sector, we favour KPJ Healthcare Bhd due to its brownfield expansion and opening of new hospitals. KPJ has experienced a breakout continuation pattern with a consensus target price of RM2.98
The local bourse closed above all the MA (moving average) lines with technical indicators having turned positive at the current juncture; the MACD histogram has expanded above zero while the RSI is trading above 50.
Resistance is anticipated around 1,556-1,561 while support is located at 1,521-1,526. – Aug 7. 2025
