BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The tabling of the 13th Malaysia Plan (13MP) failed to spark interest within Bursa Malaysia with the FBM KLCI having resumed its pullback pattern on Thursday as the key index recorded a -1.3% month-on-month decline.
The local bourse lingered in the negative territory for the entire trading session as foreign funds offloaded RM85 mil worth of Malaysian equities.
Trading volumes, however, rose to 3.8 billion shares from 2.7 billion shares recorded in the prior session as trading interests were focused on the lower liners.
We are in view that the imposition of 19% tariff rate onto Malaysia goods export to the US could bode well for the Malaysian economy and stock market as it offers a relatively competitive position compared to higher global tariff regimes.
The moderation of the tariff level supports domestic industries while maintaining openness to trade, potentially attracting foreign investment and boosting investor confidence.
Technically, the FBM KLCI has formed a bearish candlestick after resuming its downward bias consolidation pattern.
However, we reckon that bargain hunting may emerge following clarity over the tariff rates which are seen as mildly positive and could spur the key index higher to its immediate resistance at 1,540 points, followed by 1,550 points.
Downside wise, near-term support is at 1,511 points, followed by the 1,500 points
Malacca Securities Research
The local bourse may start on a weaker tone, tracking Wall Street’s performance. However, the downward adjustment of Malaysia’s reciprocal tariff from 25% to 19% might provide a support towards trading on the local front.
Meanwhile, we anticipate buying interest in energy players like Deleum Bhd, supported by the recent spike in Brent Crude, its strong net cash position and attractive dividend yield.
Besides, with additional contract wins in Johor with the potential to replicate this success in Penang, we see ITMAX System Bhd as a strong fundamental stock pick.
Lastly, with Tenaga Nasional Bhd’s capex expected to extend through year-end, we believe this should benefit KJTS Group Bhd, MN Holdings Bhd, UUE Holdings Bhd and Southern Cable Group Bhd for the foreseeable future.
The local bourse closed lower with technical indicators showing negative signals at the current juncture; the MACD histogram has expanded below zero while the RSI is approaching oversold level.
Resistance is anticipated around 1,528-1,533 while support is located at 1,493-1,498. – Aug 1, 2025
