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 winning streak to a sixth consecutive session with more than two-thirds of its constituent stocks ending the day in positive territory, tracking the upbeat performance on Wall Street overnight.
Trading activity strengthened with total market volume increasing to 3.89 billion shares from 2.80 billion shares in the previous session.
Market breadth remained firmly positive with 690 gainers outpacing 487 decliners, reflecting the sustained improvement in overall market sentiment and investors’ growing appetite for risk.
Following the benchmark index’s recent string of advances, we believe the FBM KLCI could be vulnerable to a bout of profit-taking in the near term as investors lock in gains accumulated over the past few sessions.
Nevertheless, the broader market undertone is expected to remain constructive, supported by resilient domestic economic conditions, improving corporate earnings prospects and continued optimism surrounding the technology sector.
Investors will also be keeping a close watch on upcoming economic data releases and developments in the global trade landscape for fresh market catalysts.
Technically, the key index has gapped up and formed another bullish candlestick but is approaching the RSI overbought territory.
The immediate resistances have now shifted to 1,756 points, followed by 1,770 points. Meanwhile, near-term supports are pegged at 1,732 points and 1,720 points respectively.
Malacca Securities Research
With the US Federal Communications Commission (FCC) reportedly drafting restrictions on Chinese-made optical transceivers to protect core AI infrastructure, we expect this regulatory move to further accelerate the “China+1” supply chain shift towards Malaysian tech players.
This could benefit NationGate Holdings Bhd and Inari Amertron Bhd with the former expected to capture higher order volumes given its deep manufacturing relationship with US optical networking giant Coherent.
Meanwhile, the latter should secure increased chip-packaging demand through its close partnership with Broadcom as global tech giants re-route orders away from China.
The FBM KLCI continued to extend its gains with the technical indicators also showing encouraging signals at the current juncture as the MACD histogram has expanded above the zero line while the RSI is also approaching 70.
Key resistance is pegged at 1,763-1,768 with support expected around 1,728-1,733. – Aug 6, 2026
