BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI began the month on a firm note, buoyed by investor optimism following the US’ decision last Friday to impose a lower 19% tariff on Malaysian goods into the country.
The local bourse lingered in the positive territory for the entire trading session with more than half of the key index constituents finishing higher.
Trading volumes, however, slipped to 3.2 billion shares from 3.8 billion shares in the previous session as trading interests were largely cantered on the larger cap stocks.
The market responded positively to the finalised reciprocal tariff rates and encouraging economic data whereby Malaysia’s manufacturing PMI climbed to 49.7 in July 2025 to the highest level since February 2025.
Given that the key index has recently under-performed compared to some of its regional peers, there may be room for a catch-up rally.
Meanwhile, a slight easing in foreign fund outflows is helping the index establish a more stable footing, potentially paving the way for a firmer recovery momentum.
While the FBM KLCI has gapped up and formed a bullish candlestick, the local bourse continues to tread well within its near-term consolidation band.
A sustain recovery would be required to boost the key index towards its immediate resistance located at 1,540 points, followed by 1,550 points. On the flipside, near-term support is at 1,511 points, followed by the 1,500 points.
Malacca Securities Research
Tracking Wall Street’s sell-down last Friday, the local bourse might kickstart the week on a softer note.
However, given that the 13th Malaysia Plan (13MP) charts strong emphasis on AI development, green energy and digital transformation, we continue to remain bullish toward the utilities, construction, telecommunication and renewable energy sectors.
Some of our top picks include YTL Power International Bhd, Gamuda Bhd, TIME dotCom Bhd, Gas Malaysia Bhd and Solarvest Holdings Bhd.
Lastly, we continue to favour ITMAX System Bhd as a strong fundamental stock pick on the back of its 70%-owned unit Selmax Sdn Bhd having secured a 10-year contract from the Subang Jaya City Council under the Selangor Intelligent Parking (SIP) system coupled with other contracts won in Johor and Penang.
The local bourse closed higher 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 1,548-1,553 while support is located at 1,513-1,51. – Aug 4, 2025
