BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resumed its pullback on Friday, ending the week 1.8% week=on-week lower, as investor sentiment remained subdued amid escalating geopolitical tensions in the Middle East.
Trading activity continues to moderate with total market volume easing to 3.04 billion shares from 3.20 billion shares in the previous session.
Market breadth remained firmly negative with 722 decliners overwhelming 339 advancers, reflecting broad-based selling.
The FBM KLCI could attempt to find stability following last week’s volatile trading although investor sentiment is likely to remain cautious amid lingering geopolitical uncertainties and external market headwinds.
Market participants will continue to monitor developments in the Middle East alongside key US corporate earnings releases and macro-economic data for further cues on global risk appetite while bargain hunting may emerge on fundamentally sound large-cap stocks should external conditions improve.
Technically, the key index has gapped down to close marginally above the 1,700 psychological level.
The immediate resistance is now lowered to 1,720 points, followed by 1,735 points. Meanwhile, near-term supports are shifted to 1,686 points and 1,676 points respectively.
Malacca Securities Research
We expect the FBM KLCI to see a relief rebound, supported at 1,700 last week alongside the pausing of US airstrikes over the weekend.
Meanwhile, institutional rotation into plantation stocks is set to gather momentum, backed by CPO (crude palm oil) prices holding above RM4,500/MT and El Niño which drives the tight supply in CPO.
We favour Sarawak Oil Palms Bhd, Johor Plantations Group Bhd and SD Guthrie Bhd for their attractive technical set-ups and defensive dividend yields.
Additionally, news of Formula 1 returning to Malaysia in October could drive tourist inflows, surging consumer stock earnings with accommodation already fully booked at tripled prices.
The FBM KLCI fell amid extended profit taking activities with the MACD histogram having contracted slightly while the RSI has eased toward the 50 level. Near-term resistance sits at 1,716-1,731 with support anchored at 1,671-1,686. – July 27, 2026
