BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI took another step back ahead of the extended weekend break with the weakness largely attributed to the quarterly MSCI index re-balancing.
Trading activity, however, picked up with traded volumes jumping to 5.07 billion shares from 3.47 billion shares in the previous session.
Market breadth turned negative, with 917 decliners overwhelming 405 advancers, pointing to broad-based selling pressure across the market.
We expect the FBM KLCI to remain range-bound with a slight negative bias in the near term.
However, the sharp sell-down in the previous session could potentially attract bargain hunting, particularly in fundamentally sound stocks that have been beaten down.
Investors will also be watching the upcoming US Factory Orders data slated to be released later tonight for further clues on the health of the US economy and global risk appetite.
Technically, the key index has formed another bearish candlestick to wipe out almost all its monthly gains.
The immediate resistances are now shifted to 1,740 points, followed by 1,753 points. Meanwhile, near-term supports are pegged at 1,710 points and 1,700 points respectively.
Malacca Securities Research
Tracking Wall Street’s negative overnight performance, we expect the FBM KLCI to kickstart the shortened trading week on a weaker footing.
Stock-wise, we favour automation solutions provider Greatech Technology Bhd, underpinned by its RM1.8 bil order book (representing 2.3x FY0225 revenue) and multi-sector tailwinds across DC (data centre), nuclear energy, solar and life sciences.
Meanwhile, on-going haze and forest fires in Kalimantan, Indonesia should also drive a surge in bottled drinking water consumption, thus benefiting Spritzer Bhd and Sabah-based Life Water Bhd.
Lastly, riding on the country’s DC boom and NETR (National Energy Transition Roadmap) execution, we continue to favour cable manufacturer Southern Cable Group Bhd.
While the FBM KLCI experienced a pullback, the technical indicators are still showing mixed signals with the MACD histogram expanded toward its positive territory while the RSI is trading below 50.
Key resistance lies within 1,740-1,745 with support expected around 1,705-1,710. – Sept 1, 2026
