BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The key index surrendered all its intraday gains to end with minor losses yesterday following an end-of-day selling on selected index heavyweights.
For much of the day, however, the FBM KLCI reacted positively to the gains on Wall Street by climbing to a high of 1,596 points. Lower liners were mixed-to-lower, resulting in market breadth turning negative.
Traded volumes, meanwhile, slipped below 3 billion shares as foreign institutional selling dominated trading again.
The incessant selling by foreign institutions looks to be preventing a more meaningful rebound on the FBM KLCI with this trend likely to prolong as there are still few signs of their selling abating for now.
Nevertheless, domestic institutions could provide some buying support that should enable the key index to stay relatively steady around the present levels for now.
With the results reporting season also approaching its tail-end, market players will also be scrutinising these results for pointers on their earnings ahead but with cautiousness still dominating sentiments, the upsides could still be measured.
On the upside, the immediate resistance is at the 1,590 level, followed by the psychological 1,600 level. The supports, meanwhile, are at 1,580 and 1,575 points respectively
Malacca Securities Research
Given the S&P 500 hitting record high, we expect the FBM KLCI to trade on a positive note despite the long weekend break with the key focus likely on the technology sector.
Meanwhile, we continue to favour the construction and utilities sectors, underpinned by nationwide infrastructure developments such as the JS-SEZ (Johor-Singapore Special Economic Zone) and Penang LRT Line, data centre investments and Tenaga Nasional Bhd’s grid upgrades.
We also favour SD Guthrie Bhd in the plantation sector, benefiting from its joint development with Gamuda Bhd to build solar PV (photovoltaic) assets and from rising CPO (crude palm oil) prices.
Lastly, traders can monitor counters like Malayan Cement Bhd, Kimlun Corp Bhd and Mega Fortris Bhd for trading opportunities.
The FBM KLCI continued to be supported above the MA (moving average) lines pending confirmation from the technical indicators as the MACD histogram started to turn below zero while the RSI hooked downward below 70.
Resistance is anticipated around 1,602-1,607 while support is located at 1,567-1,572. – Aug 29, 2025
