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 gains on Friday in line with the positive performance across regional markets, thus enabling the benchmark index to post a 0.7% week-on-week gains.
Trading activity improved with 2.83 billion shares changing hands compared with 2.70 bilion shares in the previous session.
Market breadth also strengthened with 648 advancers outpacing 388 decliners, signalling improved participation across the broader market.
The FBM KLCI is likely to maintain a slight positive bias tone as the key index attempts to build onto its recent rebound, supported by improving market sentiment and continued bargain hunting.
Nevertheless, upsides may remain capped as investors await release of the US ISM Services PMI data later tonight for further clues on the health of the world’s largest economy and the potential implications for the US Federal Reserve’s monetary policy path.
Barring any adverse external developments, the key index is likely to trade within a mildly upward trajectory, underpinned by selective buying interest in fundamentally sound large-cap and domestic-oriented stocks.
Technically, the key index has gapped up and formed another bullish candlestick. The immediate resistances have now shifted to 1,684-1,690 points. Near-term supports are pegged at 1,656 points and 1,648 points respectively.
Malacca Securities Research
With fading concerns over US Fed rate hikes and receding US-Iran geopolitical risks, we expect sentiment to remain constructive for the local bourse today.
Amid continued weakness in crude oil, sentiment should continue to bode well for the consumer sector, benefitting stocks such as 99 Speed Mart Retail Holdings Bhd, Mr DIY Group (M) Bhd and Eco-Shop Marketing Bhd.
We also like the plantation sector given the on-going El Niño weather conditions by eyeing stocks such as Kuala Lumpur Kepong Bhd, SD Guthrie Bhd and Johor Plantations Group Bhd.
Lastly, we favour CPE Technology Bhd due to its strategic positioning within the AI (artificial intelligence)-driven semiconductor front-end supply chain and the strong sequential rebound in its latest quarterly net profit.
With the FBM KLCI rebounded, its technical indicators are also recovery signals at this current juncture as the MACD histogram has started to expand toward the positive region while the RSI is also approaching 50.
Resistance is seen around 1,694-1,699 with support at 1,659-1,664. – July 6, 2026
