BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resumed trading on a firmer manner after the extended weekend break as the key index managed to claw its way into the positive territory and closed mildly higher towards the end of the trading bell yesterday.
The lower liners, however, extended their pullback mode amid the negative market sentiment.
With trading activities relatively muted on the holiday shortened trading week, traded volumes fell to 2.9 billion shares from 3.08 billion shares in the prior session.
The benchmark index ended on a mildly firmer note after navigating through an early-session volatility yesterday.
Towards the end of the trading session, there were bouts of bargain hunting which allows the local bourse to rebound from its intraday low.
The improved sentiment was also supported by better S&P Global Malaysia Manufacturing PMI which rose to 49.9 – the strongest reading since June 2024.
Looking ahead, while domestic indicators are pointing to early signs of stabilisation, the broader outlook will still be influenced by global market drivers, particularly the trajectory of US interest rates, China’s economic recovery momentum and fund flows.
With the key index having formed a dragonfly doji candlestick yesterday, buying interest may likely be supportive over the interim with immediate resistances set at 1,580 and 1,588 points. Meanwhile, supports are located at 1,560 and 1,550 points.
Malacca Securities Research
Tracking the negative overnight performance in the US, we anticipate the local bourse to trade on a weaker tone today.
The market may turn defensive, focusing on defensive sectors like banks, REITs and consumer with some of our top picks including AMMB Holdings Bhd, IGB REIT and 99 Speed Mart Retail Holdings Bhd which has announced its expansion into China.
Meanwhile, traders can monitor solar-related counters such as Pekat Group Bhd and Northern Solar Holdings Bhd which are currently in an uptrend underpinned by government initiatives like the National Energy Transition Roadmap (NETR), Net Energy Metering (NEM) and Large-Scale Solar (LSS) projects.
Lastly, investors may also consider the upcoming Express Powerr Solutions Bhd (M+ target price: 31 sen). initial public offering (IPO).
The FBM KLCI is still trading on a higher-low-and-higher-high pattern with contradicting technical indicators as the MACD histogram has expanded negatively while the RSI is hooked downward below 70.
Resistance is anticipated around 1,591-1,596 while support is located at 1,556-1,561. – Sept 3, 2025
