BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Renewed selling pressure on more than half of the index components led to a pullback in the FBM KLCI last Friday, effectively wiping out most of its earlier weekly gains.
As a result, the key index ended the week with a modest 0.5% week-on-week gain. Similarly, the broader market experienced a retreat as profit-taking activities took precedence, reflecting growing caution among investors.
Trading volume declined to 2.9 billion shares from 3 billion shares registered in the prior session, indicating a lack of significant conviction to commit larger positions.
Despite an earlier recovery in the local bourse, the market was unable to sustain its upward momentum, suggesting that domestic fiscal support measures that spurred the Malaysian markets have proven to be short-lived.
As a result, it’s likely that the market will remain in a period of consolidation as evidenced by the sideways price movement until there is greater visibility on key macroeconomic developments, particularly regarding trade relations between the US and Malaysia.
We are of the view that investors are adopting a “risk-off” approach until there is more clarity on the trade situation.
Technically, the FBM KLCI has formed a bearish candle to wipe out most its previous session gains to remain in the consolidation zone.
We continue to see the 1,550-level serving as the near-term resistance, followed by 1,565 points. On the downside, immediate support is pegged at 1,518 points, followed by 1,511 points.
Malacca Securities Research
Tracking Friday’s Wall Street’s rally, we believe the positive sentiment may spill-over towards stock on the local front.
Given Tenaga Nasional Bhd’s capex roll-out stretching until year-end with data centre packages expected to be announced over the next two months in 2H 2025, we see MN Holdings Bhd UUE Holdings Bhd as well as KJTS Group Bhd as potential beneficiaries.
Although the recent OPR (overnight policy rate) cut may directly impact the NIM (net interest margin), we opine that the banking sector commands undemanding valuations, currently trading at 10x P/E vs the 10-year average of 12.2x.
Meanwhile, REITs remain attractive given their premium yields over government-backed securities.
The local bourse closed lower on Friday. However, technical indicators are showing positive signals as the MACD histogram has expanded above zero while the RSI is hovering above the 50 level.
Resistance is anticipated around 1,548-1,553 while support is located at 1,513-1,518. = July 238, 2025
