BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
After two days of recovery, the FBM KLCI staged a pullback yesterday as sentiment weakened due to quick profit-taking from foreign funds.
Market confidence was further dampened by news of the Malaysian Anti-Corruption Commission (MACC) launching probes into two additional companies linked to bribery in data centre projects.
This development pressured the construction sector which retreated from its seven-month high.
As a result, the key index slipped below the 1,525 level. Meanwhile, lower liners also trended mostly lower. Trading volume rose slightly to 3.5 billion shares from 3.2 billion shares in the previous session as profit-taking intensified within the lower liners.
Looking ahead, investors will closely monitor Malaysia’s inflation data due for release later today which is expected to remain stable and hover at its lowest level since February 2021.
Meanwhile, after holding the federal funds rate steady at 4.25%-4.50% for a fourth consecutive meeting in June 2025, US Federal Reserve Chair Jerome Powell is likely to maintain a dovish tone in his upcoming speech tonight as the world’s largest central bank seeks more clarity on inflation and economic growth prospects before attempting to take any measures.
In our view, the recent market pullback coupled with a lack of fresh domestic catalysts has rendered the local bourse directionless once again as it awaits greater clarity on tariff-related developments.
From a technical perspective, the FBM KLCI is expected to continue consolidating with the immediate resistance seen at the 1,530-1,535 range. On the downside, key support levels are located at 1,511 and 1,500 points.
Malacca Securities Research
Despite the MACC’s investigation into a RM180 mil data centre project in Johor, we view this as a buy-on-dip opportunity for Sunway Construction Group Bhd, Sunway Bhd and other data centre-related counters, supported by their strong fundamentals and solid order book with two to three years of earnings visibility amid current data centre boom in the country.
Investors may also consider Sarawak-based construction players like Cahya Mata Sarawak Bhd and Ibraco Bhd, supported by the state’s infrastructure development.
Lastly, the government’s delay in implementing targeted RON95 subsidies should bode well for the consumer sector with Mr DIY Group (M) Bhd and 99 Speed Mart Retail Holdings Bhd as our top picks.
The local bourse is still trading below the MA (moving average) lines with technical indicators showing weak uptrend signals. The MACD histogram is hovering in the negative territory while the RSI is slightly below 50.
Resistance is anticipated around 1,539-1,544 while support is located at 1,504-1,509. – July 22, 2025
