BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI maintained its ascend on Friday as it tested the 1,600 level but ended below the psychological level to end to week.
The upsides were largely in line with the positive undertone among regional indices that were led by technology shares which also saw shares from the sector on Bursa Malaysia leading the gainers.
Broader market conditions were also firm to end the week firmer with market breadth on the positive side but traded volumes were again little changed from a day earlier.
Near-term market conditions is likely to remain buoyant, riding on the coattails of the strong performances on Wall Street last Friday that was lifted by increasing odds of the US Federal Reserve cutting interest rates soon.
The potential US interest rate cut is widely tipped to benefit equities as well as likely to benefit Malaysian equities thus enabling the key index to make another pass at the 1,600 level over the near-term despite the still overbought technical conditions following the firm rebound since the start of the month.
As the market momentum continues to build up, the 1,600 level could be breached and the FBM KLCI could head towards the next resistances at 1,603 and 1,615 points respectively.
On the downside, the supports are pegged at 1,590 and 1,585 points respectively.
Malacca Securities Research
Taking a cue from Wall Street’s positive lead, the local bourse is expected to open higher, especially in the technology sector.
Besides, traders may shift their attention to Pekat Group Bhd and Solarvest Holdings Bhd given the renewed buying interest in the solar segment following the government’s push for renewable energy (RE).
Meanwhile, KJTS Group Bhd staged a solid flag formation breakout ahead of its quarterly results this Wednesday and stands as a key beneficiary of higher electricity tariffs and rising data centre demand in Johor.
Lastly, we view MN Holdings Bhd and UUE Holdings Bhd as being supported by Tenaga Nasional Bhd’s on-going capex roll-out which extends until year-end while the country’s positive developments in the utilities sector should provide a healthy job pipeline for these counters.
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 1,612-1,617 while support is located at 1,577-1,582. – Aug 25, 2025
