BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI traded in a choppy manner on Wednesday before settling higher, driven by gains across selected telco and banking heavyweights.
Trading activity improved slightly with total market volume at 2.97 billion shares from 2.94 billion shares in the previous session.
Market breadth also turned positive with 550 advancers beating 476 decliners, indicating a more broad-based buying conviction.
Going forward, the FBM KLCI could extend its recent stability, underpinned by resilient buying interest in selected index heavyweights despite lingering external uncertainties.
While the US Federal Reserve’s decision to keep its benchmark interest rate unchanged was widely anticipated and should provide some near-term relief to regional markets, investors are likely to remain cautious ahead of the advance estimate of US 2Q 2026 GDP (gross domestic product) which could offer fresh clues on the strength of the US economy.
Also, the unabated geopolitical tension in the Middle East could cap any further potential gains.
As such, we expect the local benchmark to trade within a range-bound manner. Technically, the key index has gapped up to close marginally higher. The immediate resistance remains located at 1,720 points, followed by 1,735 points.
Meanwhile, near-term supports are pegged at 1,686 points and 1,676 points respectively.
Malacca Securities Research
Amid a hawkish hold evident by three dissenting votes advocating for a 25bps rate hike, Wall Street is expected to remain cautious although the US Fed has kept interest rates unchanged at 3.50%-3.75%.
Meanwhile, the local bourse is expected to trade on a selective footing with higher crude oil prices spurting buying interest in the oil and gas (O&G) space, thus favouring key counters such as Dialog Group Bhd, Dayang Enterprise Holdings Bhd, Bumi Armada Bhd and Velesto Energy Bhd.
Also, we expect Hengyuan Refining Company Bhd and PETRONAS Chemicals Group Bhd to benefit from prolonged supply disruption uncertainties in the Strait of Hormuz.
In the technology sector, upside gains may be capped following negative overnight performance on Wall Street.
However, we still like Dufu Technology Corp Bhd and Notion VTec Bhd where the former has produced stellar results which may benefit sentiment among HDD (hard disk drive) players.
The FBM KLCI may build on its upward momentum given the constructive technical set-up as the MACD histogram continues its rounding bottom formation while the RSI holds above 50.
Near-term resistance is expected between 1,731 and 1,746 with support pegged at 1,686-1,701. – July 30, 2026
