BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI was sent lower yesterday in reaction to the imposition of a 25% tariff on imports into the US but the selling pressure was relatively benign which allowed for the key index to stay above the psychological 1,500 level.
Nevertheless, most Bursa sector indices were lower with the technology sector the day’s biggest loser.
As a result, market breadth remained on the negative side albeit the ratio was not as severe as expected due to mild bouts of support. Traded volumes also remained above 3 billion shares for the day.
With the reaction to the 25% tariff more muted-than-expected, there is still hope for stocks on the FBM KLCI to find stability and to possibly mount a recovery, particularly with the tariffs still subject to negotiations and may not be as punitive as first thought.
However, there may still be near-term cautiousness with market players opting to stay on the sidelines.
This could see the key index on a listless note and the near-term downside bias remains due to the wait-and-see stance that is reducing buying interest.
At the same time, market players will also be waiting for Bank Negara Malaysia’s (BNM) interest rate decision later today where a 25 basis points cut – the first in two years – is possible as a pre-emptive measure.
With a sideway trend expected, the key index’s immediate support is at 1,525 points, followed by the 1,520 level. On the upside, the resistances are at 1,533-1,537 levels, followed by the 1,540 level.
Malacca Securities Research
Following MITI’s announcement of continued engagement with the US on tariff issues, we believe the market may trade on a mixed note pending further clarity.
Meanwhile, despite the US plan to curb certain NVIDIA chip export to Malaysia, we remain optimistic about YTL Power International Bhd.
This optimism is supported by the country’s push for AI (artificial intelligence) development.
We believe YTL Power will continue to lead as a first mover in Malaysia’s AI ecosystem, underpinned by its RM10 bil investments into AI infrastructure, namely ILMU 1.0 and Ryt Bank (Malaysia’s first AI-powered digital bank).
Lastly, BNM will hold its Monetary Policy Committee (MPC) meeting today with a potential decrease in OPR (overnight policy rate) may boost the country’s economy,
The local bourse continued to be supported above both of the EMAs with technical indicators showing mixed signals; the MACD histogram is hovering in the positive territory while the RSI has hooked downwards.
Resistance is anticipated around 1,545-1,550 while support is located at 1,510-1,515. – July 9, 2025
