BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its rebound after Bank Negara Malaysia (BNM) kept the benchmark interest rate unchanged at 2.75% in line with market expectations as resilient economic growth and contained inflation continue to support the case for a neutral monetary policy stance.
Trading activity, however, moderated with total volume easing to 3.91 billion shares from 4.21 billion shares in the previous session.
Market breadth turned positive, with 625 advancers edging 497 decliners, highlighting an improved market sentiment.
Going forward, we expect the FBM KLCI to continue building on its recent recovery, supported by improved investor sentiment locally and on Wall Steet overnight.
Nevertheless, near-term market direction could remain data-dependent with investors closely monitoring the US labour market, particularly the upcoming unemployment rate data, following the latest ADP report which showed private-sector employment growth slowing to 38,000 in August from a revised 46,000 in July.
A softer-than-expected labour market reading could reinforce expectations of a more accommodative US monetary policy stance, potentially providing further support to global risk appetite and emerging-market equities.
Following the recent set-up, an extended bargain hunting could lift the key index towards the immediate resistances located at 1,722 points, followed by 1,727 points. Meanwhile, near-term supports remain pegged at 1,700 points and 1,686 points respectively.
Malacca Securities Research
Tracking Wall Street’s positive overnight performance, we expect the FBM KLCI to remain on a recovery footing.
Stock-wise, we favour Sam Engineering & Equipment (M) Bhd with its equipment segment recording a 30% quarter-on-quarter (qoq) jump in its 1Q 3/FY2027, led by stronger semiconductor front-end and HDD (hard disk drive) demand.
In its aerospace segment, SAM is re-locating its manufacturing base from Singapore to Thailand to secure lower production costs and better margins.
Hence, SAM as a proxy for Applied Materials is expected to see robust equipment orders as the broader semiconductor market enters an AI super cycle while its aerospace segment benefits from margin expansion as its Thailand re-location progresses.
While the FBM KLCI rebounded, its technical indicators are still showing slightly weaker momentum as the MACD histogram continues to hover in the negative territory while the RSI is below 50.
Key resistance lies within 1,730-1,735 while near-term support is expected around 1,695-1,700. – Sept 4, 2026
