BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI edged higher for a fifth consecutive session on Tuesday after hovering largely in positive territory throughout the trading day as buying interest in selected heavyweight counters continued to underpin sentiment.
Trading activity inched higher with total market volume at 2.80 billion shares compared with 2.73 billion shares recorded in the previous session.
Market breadth turned positive with 621 gainers outpacing 482 losers, reflecting an improvement in overall market sentiment.
While the benchmark index could remain upbeat, gains could be measured as investors assess the sustainability of the rally.
Nevertheless, any downside risk could be cushioned by the improving geopolitical developments in the Middle East as well as the falling US treasury yields.
Economic wise, market participants are expected to closely monitor release of the US ISM Services PMI data later tonight for further indications on the strength of the world’s largest economy and potential implications for the US Federal Reserve’s monetary policy trajectory.
Technically, the key index has formed another bullish candlestick to sustain the upward momentum.
The immediate resistance remains located at 1,735 points, followed by 1,740 points. Meanwhile, near-term supports are pegged at 1,710 points and 1,700 points respectively.
Malacca Securities Research
Tracking Wall Street’s performance, we expect the local bourse to trend higher in the near term.
With Hartalega Holdings Bhd releasing strong 1Q FY6/2027 results yesterday, including 73.1% quarter-on-quarter and 455.4% year-on-year profit growth as well as a double-digit net profit margin of 11.6%, we believe buying interest will be sustained in glove counters after being oversold over the past few weeks.
Besides, we favour Dagang NeXchange Bhd as SilTerra will continue to benefit from the AI (artificial intelligence)-driven silicon photonics megatrend while plantation stocks such as SD Guthrie Bhd, Kuala Lumpur Kepong Bhd and United Plantations Bhd will continue to benefit from elevated crude palm oil futures (FCPO) prices.
The FBM KLCI continued to extend its gains with the technical indicators showing encouraging signals at the current juncture as the MACD histogram is expanding above the zero line while the RSI is hovering above 50.
Key resistance is pegged at 1,747-1,752 with support expected around 1,712-1,717. – Aug 5, 2026
