BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Profit taking activities emerged on the FBM KLCI on Monday as optimism surrounding tariff developments faded and concerns over global economic growth re-surfaced.
The key index traded in the negative territory for the entire trading session, dragged down by weakness in selected banking and utilities heavyweights.
Trading volumes eased to 2.6 billion shares from 3.2 billion shares in the previous session as trading activities toned down amid the negative market sentiment.
Last Friday’s dismal job reports recorded by the US resulted in a weaker performance on Wall Street with the negative sentiment permeated to stocks on Bursa Malaysia as well.
Market participants also took the opportunity to lock in recent gains. With no fresh domestic catalyst in sight and with the FBM KLCI showing signs of stalling, the key index would remain in a sideways or consolidating trend.
Externally, investors will be keeping a close tab on the US PMI and ISM Services data later tonight.
The FBM KLCI opened lower with a gap down yesterday, re-tracing a portion of its gains from the previous session as it continues to oscillate within its established longer-term consolidation range.
For now, it appears that the local bourse may turn directionless again with the immediate resistance seen at 1,540 points and subsequently at 1,550 points.
Downside wise, near-term support is at 1,511 points with a stronger support level situated at the psychological threshold of 1,500 points
Malacca Securities Research
Tracking the overnight US recovery, we believe the local bourse may trade on a positive note.
We favour the technology sector as the OPR (overnights policy rate) cut and anticipated US Federal Reserve rate easing are expected to lower borrowing costs for technology companies.
Malaysian tech players remain exempted from US tariffs with our top picks including Frontken Corpn Bhd, ViTrox Corp Bhd and EG Industries Bhd.
Meanwhile, ES Sunlogy Bhd’s rally yesterday may spur spill-over interest in other solar-related counters, supported by positive developments in the renewable energy space, including National Energy Transition Roadmap (NETR) and the 13MP. (13th Malaysia Plan).
Lastly, investors may shift their attention to REITs for domestic-focused exposure.
The local bourse kickstarted the week on a softer tone with technical indicators showing weak signals at the current juncture; the MACD histogram expanded below zero while the RSI is also trading below 50.
Resistance is anticipated around 1,541-1,546 while support is located at 1,506-1,511. Aug 5, 2025
