BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its gains on Thursday, supported by buying interest in selected PETRONAS-linked and consumer heavyweights.
Trading activity, however, moderated with total market volume easing to 2.49 billion shares from 2.97 billion shares in the previous session.
Market breadth turned negative with 581 decliners outnumbering 412 advancers, implying that profit-taking activities persisted across the broader market despite the benchmark index’s advance.
Going forward, the FBM KLCI could trade within a narrow range amid the absence of fresh domestic catalysts.
Investors are likely to remain on the sidelines while awaiting the release of China’s official manufacturing PMI and the US Chicago PMI data which could offer further clues on the health of the global economy and the trajectory of monetary policy.
Nevertheless, continued support on selected index-linked heavyweights and improving risk appetite may help limit downside risk in the near term.
Technically, the key index has formed a bullish candlestick and edged marginally higher. The immediate resistance is now located at 1,735 points, followed by 1,740 points. Meanwhile, near-term supports are pegged at 1,700 points and 1,686 points respectively.
Malacca Securities Research
Buoyed by Wall Street’s overnight gains and strong domestic earnings, the local bourse is expected to stage a tech-led rally.
Sentiment towards local technology stocks will be anchored by ViTrox Corp Bhd whose 2Q FY2026 net profit more than tripled year-on-year (yoy) to RM85 mil (up from RM28.1 mil), driven by surging AI (artificial intelligence) demand, operational efficiency and tax benefits.
We anticipate spillover fund flows into other tech names, including Inari Amertron Bhd, Malaysian Pacific Industries Bhd and Frontken Corporation Bhd.
Meanwhile, consumer plays remain attractive for investors seeking a more defensive stance. Key attractions include Nestle (M) Bhd which posted a 38% yoy jump in its 2Q net profit. Other consumer stocks like 99 Speed Mart Retail Holdings Bhd and Spritzer Bhd may also benefit.
Positive momentum could drive further gains for the FBM KLCI, backed by a MACD rounding bottom formation with the RSI hovering comfortably above 50.
Key resistance is pegged at 1,735-1,750 with support expected around 1,690-1,705. – July 31, 2026
