BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI’s upward streak continued yesterday, bucking the weakness among regional equities as selective buying interest on index-linked stocks provided the lift again.
The gains were also broad-based with Bursa sector indices, save for the Technology index, ending the day higher.
Market breadth also veered to the positive side but traded volumes were just marginally higher than the previous day with foreign institutions remaining net sellers.
Despite the overbought technical indicators and sustained foreign institutional selling, the key index has managed to sustain its upward streak of late with local institutions providing the buying support that allowed the key index to regain nearly 5.0% in August as well as closing in on the psychological 1,600 level.
While a pullback is already due amid the overbought technical indicators, there are still few signs of an imminent retreat as yet.
Consequently, the key index may continue to push higher for the time being with the support from local institutions to preserve the upsides and to potentially make a pass at the 1,600 level.
However, the 1,600 level may become a formidable level to clear as firm buying impetus is still lacking and this may still keep the upsides in check. There is an interim resistance at 1,594 points while the supports are at 1,585 points and 1,580 points respectively.
Malacca Securities Research
Tracking the weaker overnight tone in the US, the FBM KLCI is expected to trade on a lacklustre tone.
However, buying interest might emerge in domestic-driven consumer-related counters such as 99 Speed Mart Retail Holdings Bhd and Mr DIY Group (M) Bhd which are expected to benefit from government cash aid and hand-outs.
Meanwhile, news of STACK Infrastructure, a leading digital US infrastructure company, investing RM7 bil to develop a hyperscale data centre campus in Johor, may prompt investors to look into property developers with exposure to industrial tech parks such as Mah Sing Group Bhd, Sime Darby Property Bhd and Eco World Development Group Bhd.
Lastly, traders can monitor Dialog Group Bhd for trading opportunities following its breakout yesterday.
The FBM KLCI is approaching the 1,600 psychological level with technical indicators showing positive signals; the MACD histogram has expanded above zero while the RSI is nearing 70.
Resistance is anticipated around 1,605-1,610 while support is located at 1,570-1,575. – Aug 20, 2025
