BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI retreated for the third consecutive session after resume trading from an extended weekend break with the weakness largely attributed to renewed tensions between the US and Iran.
Trading activity, however, improved with total volume rising to 5.53 billion shares from 5.07 billion shares in the previous session.
Market breadth remained firmly negative with 956 decliners against 349 advancers, pointing to a broad-based sell-off.
Going forward, the FBM KLCI may attempt to find stability following the recent pullback although near-term sentiment is likely to remain cautious amid heightened geopolitical uncertainties and elevated oil prices.
Investors will also be watching the upcoming US Factory Orders data due later tonight for further clues on the health of US manufacturing demand and the broader economic outlook.
A stronger-than-expected reading could reinforce expectations of a resilient US economy and potentially keep interest-rate concerns elevated while a weaker reading may revive hopes for a more accommodative monetary-policy outlook.
Should the 1,700 psychological level remain defended, bargain hunting activities could emerge to lift the key index towards the immediate resistances located at 1,722 points, followed by 1,727 points.
Meanwhile, near-term supports are pegged at 1,700 points and 1,686 points respectively.
Malacca Securities Research
Tracking Wall Street’s negative overnight performance, we expect the FBM KLCI to trade on a weaker footing.
Meanwhile, we continue to favour Spritzer Bhf and Life Water Bhd as the on-going haze and forest fires in Kalimantan, Indonesia should lead to a surge in bottled drinking water consumption nationwide.
As Tenaga Nasional Bhd has begun building its 500km, 500kV National Grid Backbone transmission line which is also the country’s longest 500kV transmission system, we believe the new grid project will continue to benefit HV (high-voltage) substation and underground utility engineering provider MN Holdings Bhd.
Lastly, riding on the surge in oil prices, traders could target energy counters for short-term trading opportunities.
Given the continued sell-off in the FBM KLCI, technical indicators have also turned weaker with the MACD histogram expanding below the zero line while the RSI is approaching 30.
Key resistance lies within 1,715-1,720 with support expected around 1,680-1,685. – Sept 2, 2026
