BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI retreated as profit-taking took precedence while foreign funds resumed their net selling.
Trading activity also eased with market volume declining to 3.47 billion shares from 4.17 billion shares in the previous session.
Market breadth was fairly balanced with 612 advancers against 596 decliners, highlighting a lack of clear directional conviction.
We expect uncertainty and cautiousness to persist in the near term with the FBM KLCI likely to remain range-bound amid volatile foreign fund flows shifting expectations on US monetary policy and elevated geopolitical risks.
Investors will also monitor Malaysia’s upcoming PPI data for further clues on domestic cost pressures following the sharp 9.2% yoy increase recorded in June 2026 as well as Federal Reserve chairman Kevin Warsh’s speech at the Jackson Hole Economic Policy Symposium for further guidance on the US monetary policy outlook.
Technically, the key index has formed a bearish candlestick and is poised for a potential consolidation. The immediate resistances remain located at 1,750 points, followed by 1,760 points. Meanwhile, near-term supports are pegged at 1,732 points and 1,711 points respectively.
Malacca Securities Research
Tracking Wall Street’s positive overnight performance, the FBM KLCI is expected to trade on a stronger footing, particularly the technology sector.
Stock-wise, we continue to favour:
- SkyeChip Bhd on the back of its on-going strategic partnerships, including custom interface IP design with Cerebras Systems for wafer scale AI (artificial intelligence) platforms and design-token access expansion with Arm Holdings;
- THMY Holdings Bhd which is experiencing surging demand for AI and DC (data centre) automated-testing solutions alongside its factory expansion in Penang; and
- Dagang NeXchange Bhd which is expected to see higher ASPs (average selling prices) and additional production capacity for its silicon photonics products.
While the FBM KLCI experienced a pullback yesterday, the technical indicators are still encouraging with the MACD histogram having expanded toward its positive territory while the RSI is trading above 50.
Key resistance lies within 1,756-1,761 with support expected around 1,721-1,726. – Aug 28, 2026
