BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI remained upbeat and extended its upward streak for the sixth consecutive session after the key index edged higher on Tuesday.
Gains in selected banking heavyweight drove the extended rally yesterday, sending the key index to its highest level in nearly three months.
Meanwhile, trading activities were relatively unchanged at 2.5 billion shares as compared to the previous session, implying a consistent level of investor participation.
The local bourse delivered yet another stand-out performance, sustaining its bullish momentum throughout the session, supported by the extension of a trade truce between the US and China.
However, the rebound appears to be over-extended with the index retreating from its intraday high which is an early sign of profit-taking.
Going forward, the release of the US inflation rate of 2.7% in July 2025 which is tamer-than-expected, may pave the way for the US Federal Reserve to cut its benchmark interest rate as early as next month.
The possibility of easing monetary policy will in turn be supportive towards the equities markets.
Technically, however, the formation of a shooting star candlestick further underscores the likelihood of a near-term pullback.
For now, the index faces an immediate resistance at 1,566 points, followed by 1,570 points while support lies closer to 1,550 points, followed by 1,540 points.
Malacca Securities Research
With Wall Street’s positive lead, we expect buying support to spill over across the local bourse.
On a sectoral view, we believe traders may focus on plantation stocks given the robust earnings from key players coupled with the recent breakout in CPO (crude palm oil) prices.
Meanwhile, Apple’s US$100 bil investment roll-out may have a positive spillover effect on local technology players like Unisem (M) Bhd, Inari Amerton Bhd and Frontken Corp Bhd while ITMAX System Bhd could be awarded more projects with its sticky solutions and services.
Besides, we like domestic-driven sector like consumer as traders may stay defensive amid external uncertainty.
The local bourse closed above all the MA (moving average) lines with technical indicators having turned positive at the current juncture; the MACD histogram has expanded above zero while the RSI is approaching overbought level.
Resistance is anticipated around 1,582-1,587 while support is located at 1,547-1,552 . – Aug 13, 2025
