BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Malaysian equities managed to mount a recovery yesterday, rising in tune with the mostly positive regional equity indices to end its streak of two down days.
Conditions were calmer as the foreign selling eased, thus allowing for mild bargain hunting to emerge and to shore up the key index to the 1,520 level at the close.
Lower liners also recovered with mild bargain hunting emerging to help market breadth turn positive for the day. Meanwhile, traded volumes were little changed at 3.2 billion shares.
Although yesterday’s rebound was welcomed to end the short downward streak, market sentiments are still largely insipid, hampered by the lack of fresh leads with lingering concerns over the tariffs to keep conditions on a cautious note for longer.
In particular, there are still few noteworthy developments on the negotiations with the Trump administration over the 25% tariffs that will be imposed on Malaysian exports into the US after several neighbouring countries have already put in place trade agreements with the US.
This is likely to keep the FBM KLCI on a guarded mode for now. Nevertheless, there should be continuing support that may allow the key index to stay above the 1,520 level with the upper range set at 1,530 points.
In between, the resistances are at the 1,523-1,525 levels while the supports are at 1,515 points and 1,511 points respectively.
Malacca Securities Research
Taking a cue from Wall Street’s upbeat performance, the local bourse is set to open higher.
Also, we believe TSMC’s stronger-than-expected quarterly results should have a spill-over effect on local technology players.
This is particularly for those in the E&E (electrical & electronic) and EMS (electronic manufacturing services) spheres compounded with the recent development on resumption of chip sales to China.
We also expect the on-going developments in the data centre theme coupled with Tenaga Nasional Bhd’s capex roll-out for grid-upgrading works to boost the interest in Gamuda Bhd, MN Holdings Bhd, UUE Holdings Bhd and Southern Cable Group Bhd (SCG).
REITs are also favourable with its decent yield and defensive nature of its business.
The local bourse closed higher on Thursday. However, momentum remained negative at the current juncture as the MACD histogram stayed in negative territory while the RSI is hovering below the 50 level.
Resistance is anticipated around 1,535-1,540 while support is located at 1,500-1,505. – July 18, 2025
