BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI recovered yesterday with mild bargain hunting emerging to send it back above the 1,590 level at the close.
Still, market conditions were largely indifferent but with few adverse market developments, mild bouts of renewed buying interest helped the key index to end the day on the positive note.
Most Bursa Malaysia sector indices also headed higher with market breadth just veering into the positive side. Meanwhile, traded volumes tipped higher to nearly 2.7 billion shares.
We continue to see the FBM KLCI as largely directionless even as it hovers near to the psychological 1,600 level which is also becoming a formidable level to breach due to the lack of convincing buying impetuses.
As it is, there remains few noteworthy market leads except those from the reported corporate results with local institutional players continuing to provide the buying support to cushion against the sustained selling from foreign funds.
Therefore, buying activity will remain selective that may keep the key index mostly range-bound ahead.
The 1,600 level is also likely to remain steadfast for now until there is a meaningful increase in market leads as well as the return of foreign institutional players. In the interim, there is a resistance at 1,596 points while the supports are at 1,590 points and 1,585 points respectively.
Malacca Securities Research
Despite the sell-down on Wall Street, we believe the market may stay positive with the utilities sector leading the broader market.
We continue to like YTL Power International Bhd given its position as the country’s AI (artificial intelligence) leader, underpinned by its RM10 bil investments in Malaysia’s AI infrastructure and its upcoming debut of ILMU 1.0 and Ryt Bank.
Also, Ranhill Utilities Bhd staged a solid breakout after its positive quarterly results whereby it should benefit from increase in water tariffs and data centres’ demand in Johor.
Besides, we favour MN Holdings Bhd supported by its RM1.1 bil orderbook and riding on the country’s on-going developments in the data centre, renewable energy and power transmission segments.
The FBM KLCI is approaching the 1,600 psychological level with technical indicators showing positive signals; the MACD histogram is trading at the positive territory while the RSI has hit the 70 level.
Resistance is anticipated around 1,607-1,612 while support is located at 1,572-1,577. – Aug 22, 2025
