BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its winning run for the seventh straight session on Wednesday, surging to its highest level since February 2025 at the close.
More than two-thirds of the key index components advanced, cheering on a potential rate cut from the US Federal Reserve.
The improved sentiments also lifted trading liquidity with trading volume rising to 2.7 billion shares from 2.5 billion shares recorded in the previous session, underscoring a subtle bargain hunting tone, particularly among the lower liners.
The local bourse took another step higher, riding on the stronger prospects for US interest rate cut following the latest release of a tamer inflation data.
With the potential narrowing yield differential, we reckon emerging markets, including Malaysia, may turn more attractive.
Given that Malaysia equities have been trading in a lacklustre manner in recent months, we believe the key index is attempting to play catch-up at this juncture.
At the same time, we reckon the undemanding valuations will remain supportive towards an extended upside potential.
Technically, the FBM KLCI formed another bullish candle to breakout above the 1,582 points resistance and is looking to charge towards the next resistances located at the 1,600 psychological level even as the technical indicators are already overbought.
The ensuing resistance is at 1,606 points. On the flipside, near-term support is pegged at 1,567 points, followed by 1,550 points.
Malacca Securities Research
Tracking the positive US performance, we expect buying interest to sustain on the local front.
Traders may focus on plantation stocks, given the robust earnings from SD Guthrie Bhd and the recent breakout in CPO (crude palm oil) prices.
Also, we expect resilient buying support on technology players such as Unisem (M) Bhd, Inari Amerton Bhd and Frontken Corp Bhd as we see them as key beneficiaries of Apple’s US$100 bil investment pledge while ITMAX System Bhd could see potential project wins in Penang on the heels of its sticky solution services.
For defensive picks, we like KPJ Healthcare Bhd, 99 Speed Mart Retail Holdings Bhd, Eco-Shop Marketing Bhd and Sunway REITS in view of their resilient demand amid external uncertainty coupled with dividend payouts.
The local bourse closed above all the MA (moving average) lines with technical indicators turned positive at the current juncture; the MACD histogram has expanded above zero but the RSI is overbought.
Resistance is anticipated around 1,601-1,606 while support is located at 1,566-1,571. – Aug 14, 2025
