BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI snapped a three-day losing streak on Thursday, driven by bargain hunting across selected telco and banking heavyweights.
Trading activity improved to 2.70 billion shares from 2.52 billion shares in the previous session.
Market breadth, however, turned negative with 641 decliners outpacing 426 advancers, implying rotation into larger cap stocks.
The FBM KLCI may trade on a softer footing as weaker-than-expected US jobs data could reinforce expectations of a more cautious US Federal Reserve policy stance, thus prompting investors to re-assess the outlook for global growth and risk assets.
At the same time, the absence of fresh domestic catalyst alongside with the exodus of foreign fund flow could potentially cap further gains.
For now, investors will continue to keep a close watch on regional market performance, global interest rate expectations and upcoming economic data for fresh directional cues.
Technically, the key index has formed a bullish candlestick but remains below all its moving averages. The immediate resistances are located at 1,674-1,684 points. Near-term supports remain pegged 1,647 points and 1,638 points respectively.
Malacca Securities Research
As Wall Street is closed today, we anticipate that trading volume on the local bourse to remain muted.
With weakness in crude oil which has hit the US$71/barrel level expected to ease inflationary pressures, market sentiment will continue to bode well for the consumer sector by benefitting stocks such as 99 Speed Mart Retail Holdings Bhd, MR DIY Group (M) Bhd and Eco-Shop Marketing Bhd.
Also, we continue to favour the plantation sector given the on-going El Niño weather conditions, looking kindly upon companies such as Kuala Lumpur Kepong Bhd, United Plantations Bhd and Johor Plantations Group Bhd.
Lastly, specialty industrial chemical products distributor Eckem Holdings Bhd (M+ target price: 14 sen) will make its ACE Market debut today.
While the FBM KLCI slipped rebounded, its technical indicators are still showing weak momentum at this current juncture with the MACD histogram trading at the negative region while the RSI is hovering below 50.
Resistance is seen around 1,676-1,681 with support at 1,641-1,646. – July 3, 2026
