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 to close at its highest level in more than two months on Monday, underpinned by optimism surrounding AI (artificial intelligence)-related growth prospects and a stronger-than-expected Malaysia Manufacturing PMI reading which rose to a four-year high of 51.6 in April 2026.
Trading activity picked up with 3.06 billion shares exchanging hands from 2.92 billion shares in the prior session.
Market breadth also turned positive with 668 advancers outpacing 501 decliners as technology stocks led the charge.
Looking ahead, the FBM KLCI could turn choppy as Iran missile and drone attacks against United Arab Emirates (UAE) have added another layer of geopolitical uncertainty across the Middle East.
Still, the buoyant manufacturing PMI data reinforces the narrative of a resilient domestic economy while the renewed appetite for AI-driven technology stocks continue to provide a strong thematic tailwind.
For now, investors will be monitoring US jobs data closely that will be released later tonight as a stronger-than-expected reading could stoke expectations of a more hawkish US Federal Reserve stance, potentially tempering risk appetite across emerging markets, including Malaysia.
Technically, the key index has formed a gap up and a bullish candlestick to breakout above the 1,732 resistance and could potentially build onto its gains towards the next resistances at 1,750-1,760 points.
Meanwhile, the support is now moved to the 1,720 points, followed by the 1,711 points.
Malacca Securities Research
Tracking Wall Street’s negative overnight performance, we anticipate the spill-over effect to occur in the FBM KLCI today.
Meanwhile, the current elevated oil price environment should continue to bode well for O&G (oil & gas) counters, benefitting Dialog Group Bhd, Hibiscus Petroleum Bhd and Hengyuan Refining Company Bhd.
Given the current AI infrastructure buildout, we believe sentiment will continue to hover around the data centre theme, favouring stocks like YTL Power International Bhd, Ranhill Utilities Bhd and CBH Engineering Holding Bhd.
Lastly, Johor secondary-town-based property developer Gold Li Holdings Bhd (M+ target price: 14 sen) will close its IPO (initial public offering) applications today.
The FBM KLCI rebounded with technical indicators showing positive signals at this current juncture as the MACD histogram is trading in a positive territory while the RSI is also trading above 50.
Resistance is seen around 1,754-1,759 with support at 1,719-1,724. – May 5, 2026
