BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI marched higher after a choppy trading session, lifted by gains in more than half of the key index components yesterday. Lower liners also rebounded on bargain hunting activities.
Despite the positive market breadth, trading activities continues to simmer with traded volume easing to 2.70 billion shares from 2.9 billion shares in the prior session as investors gradually turn to the side lines ahead of the upcoming extended weekend break.
Expectedly, the local bourse index recovered amid mild bargain hunting activities as the key index floated mostly in the positive territory yesterday.
Going forward, investors will be keeping a close tab onto Bank Negara Malaysia’s (BNM) overnight policy rate (OPR) decision later today.
After a pre-emptive move with a 25-basis point rate cut in the previous Monetary Policy Committee (MPC) meeting back in July, we reckon interest rates are likely to stay pat at the current level owing to the resilient domestic economy and the need to preserve policy space amid an uncertain global outlook.
With the key index attempting to find stability, a rebound may lift the key index towards the immediate resistances set at 1,588 points, followed by the 1,600 psychological level. Meanwhile, supports remain located at 1,560 and 1,550 points respectively.
Malacca Securities Research
Tracking the broadly positive overnight performance in the US, we anticipate the local bourse to trade on a firmer note today.
Meanwhile, solar-related companies should see healthy buying support given the recent roll-out of LSS5+ packages.
On the construction play, we believe traders may focus on (i) Sunway Construction Group Bhd and Gamuda Bhd as we anticipate the data centre boom will be sustained; and (ii) Lim Seong Hai Capital Bhd which we deem undervalued given its 6x-7x order book coverage ratio.
On a more conservative play, traders may focus on sectors like banks, REITs and consumer such as AMMB Holdings Bhd, IGB REIT, and 99 Speed Mart Retail Holdings Bhd given the lower input cost environment with the latter having just announced its expansion into China.
The FBM KLCI is still trading on a higher-low-and-higher-high pattern with contradicting technical indicators as the MACD histogram expanded negatively while the RSI has hooked downward below 70.
Resistance is anticipated around 1,593-1,598 while support is located at 1,558-1,563. – Sept 4, 2025
