BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI signed off the week on a softer note last Friday to close 0.3% lower. Still, gains from earlier in the week bumped the key index to close 1.2% week-on-week higher.
Market sentiment, however, remains cautious with investors continuing to pare down their positions amid persistent external uncertainties and selective profit-taking.
Market breadth was mixed-to-lower as well with traded volumes slipping further to just 2.0 billion shares traded on Friday.
Although the local bourse edged lower, much of the intraday weakness was pared back as the key index rebounded from its intraday low following the release of Malaysia’s 2Q 2025 GDP (gross domestic product) data which maintained a steady growth momentum at +4.4% year-on-year (yoy).
The resilient economic performance underscores the economy’s ability to withstand external headwinds, supported by robust domestic demand, a healthy labour market and targeted government policies, thereby lending some support to overall market sentiment.
As we move to the final two weeks of the month, investors tun towards the impending barrage of corporate earnings releases.
From a technical perspective, the FBM KLCI has formed a hammer candlestick, indicating potential support formation after the recent two-day pullback.
Any recovery may lift the key index higher towards the 1,594 points, followed by the 1,600 psychological level. On the other end, immediate support is pegged at 1,567 points, followed by 1,550 points.
Malacca Securities Research
Tracking the positive performance of Wall Street’s index futures, we expect the local bourse to start the week on a positive note.
Sector-wise, we believe the construction and utility segments will continue to outperform as IJM Corp Bhd recently secured its largest data centre project worth RM1.4 bil in Johor which brings uts total order book to RM9.2 bil.
Meanwhile, we also like Kerjaya Prospek Group Bhd which showed both quarter-on-quarter (qoq) and yoy profit improvement in its latest quarter.
The group holds an order book of RM4 bil with a dividend yield of 7.1% and strong cash and bank balances of RM360.7 mil as of 1Q 2025.
We expect both of Kerjaya’s construction and property segments to improve, supported by its strong order book and a potential OPR (overnight policy rate) reduction.
Despite taking a breather on Friday, the FBM KLCI is still well supported above all the MA (moving average) lines with technical indicators showing positive signals; the MACD histogram has expanded above zero while the RSI is approaching 70.
Resistance is anticipated around 1,591-1,596 while support is located at 1,556-1,561. – Aug 18, 2025
