BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI stumbled yesterday on the re-emergence of selling pressure to send it below the 1,600 level at the close with sentiments soured by a similar sell-off among regional indices due to fresh political turmoil in France and the firing of US Federal Reserve Governor Lisa Cook that shook market confidence.
Similarly, lower liners also saw increased selling as traded volumes surged by nearly 50% amid the flight to safety. Expectedly, market breadth was negative due to the increased selling pressure.
Following yesterday’s steep falls, the key index could be angling for some stability as yesterday’s decline was seen as too steep despite the pullback already due from the overbought conditions.
Nevertheless, overall market conditions could become choppier amid the continuing foreign selling that contributed to most of yesterday’s sell-down.
With few signs of their selling abating, the downside pressure will persist even as domestic institutions could look to provide some measure of near-term support.
At the same time, there could also be further profit taking from the strong August gains that may keep any recovery modest for the time being. If the key index fails to find support around the 1,580 level, it could retrace further to the 1,570 or 1,560 levels.
The immediate resistance is at the 1,590 level, followed by the psychological 1,600 level again.
Malacca Securities Research
Taking cues from Wall Street’s positive lead, the local bourse is likely to open on a firmer note with continued buying interest expected in the technology sector.
We favour Unisem Bhd, Inari Ameron Bhd and Frontken Corp Bhd as we believe these companies serve as proxies for Apple and may benefit from China’s recovery.
On the construction play, we believe traders may focus on: (i) Sunway Construction Group Bhd and Gamuda Bhd amid data centre boom; (ii) Lim Seong Hai Capital Bhd which we deem undervalued given its diverse business model and strong orderbook coverage ratio of 7x; and (iii) Inta Bina Group Bhd supported by a healthy orderbook while trading at undemanding valuations.
On the utilities play, we see potential upside in MN Holdings Bhd with its results coming in above consensus and pending a flag formation breakout.
The FBM KLCI closed lower after breaching the 1,600 psychological level. However, technical indicators are showing positive signals: the MACD histogram is in positive territory while the RSI is above the 50 level.
Resistance is anticipated around 1,596-1,611 while support is located at 1,5611,566. – Aug 27, 2025
