BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Late bargain hunting on selected stocks allowed the key index to post a winning session yesterday after a lacklustre session where the FBM KLCI hovered slightly below the breakeven level for much of the day.
There was still apprehension on the market’s condition following President Trump’s fresh tariffs on Mexico and the EU that caused market players to stay defensive.
However, many lower liners extended their uptrend even with market breadth dropping into the negative side as trading volumes slipped below 3 billion shares.
We continue to think that market conditions would stay largely defensive for the time being due to the prevailing concerns over President Trump’s tariff tantrums which cause most investors to remain cautious and stay on the sidelines.
As it is, the market is still awaiting for more trade negotiations to be concluded between the US and its trading partners before the Aug 1 deadline when the higher tariffs are implemented.
For the most part, however, market players are still hopeful that some agreements will be reached and that the tariffs can be significantly reduced.
Under the prevailing environment, the key index is likely to be on a holding pattern by staying around the 1,520 and 1,540 levels for the time being with support from local funds keeping it range-bound.
The interim support and resistance are at 1,534 points and 1,537 points respectively.
Malacca Securities Research
Taking the lead from Wall Street overnight, the local bourse is expected to open on a firmer footing.
Despite the on-going trade war with uncertain US trade policies, we believe it may drive tighter inspection protocols and regulatory compliance, leading to greater demand for security screening machines to which we expect Wentel Engineering Holdings Bhd as a proxy to ride this trend.
For a defensive pick, we believe 99 Speed Mart Retail Holdings Bhd will benefit from down-trading as inflationary pressure picks up coupled with the increase in EPF’s (Employees Provident Fund) stakes.
Also, the long-term outlook for the solar industry remains favourable, supported by the National Energy Transition Roadmap. (NETR) and the recent electricity tariff hike.
The local bourse eked out marginal gains on Monday. However, momentum is mixed at the current juncture as the MACD histogram has expanded into negative territory while the RSI is still hovering above the 50 level.
Resistance is anticipated around 1,552-1,557 while support is located at 1,517-1,522. – July 15, 2025
