BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resume trading on Monday on a positive note after the extended weekend break with more than two-thirds of its index constituents advancing.
Meanwhile, the broader market also exhibited strength with the FBM Small Cap Index climbing to a more than a three-month high.
That said, overall trading participation softened with volumes easing to 2.15 billion shares vs 2.32 billion shares last Friday, suggesting that investors remain somewhat cautious and are still adjusting following the holiday-shortened week despite the healthier market breadth.
Sentiment appears to be turning more favourable of late which could help sustain the recovery momentum on the local bourse.
Nevertheless, the 1,603 level remains a formidable resistance in the near term and any further strength will likely hinge on sustained foreign fund inflows and stability in regional markets.
The latest rebound was largely supported by weaker-than-expected US employment data which strengthened market expectations of a potential interest rate cut by the Federal Reserve later this month.
Technically, with the FBM KLCI is still holding above the SMA200, the index may attempt to extend its upward trajectory with the immediate resistance seen at 1,588 points, followed by 1,603 points – the upper boundary of the prevailing consolidation range.
On the downside, support levels are located at 1,560 and 1,550 points respectively.
Malacca Securities Research
Given the broadly positive overnight performance in the US, we anticipate healthy buying support to sustain momentum in the local index.
The FBM Small Cap index has experienced a short-term breakout formation which we think might be a bullish sign for more upside potential on a broader scale.
Moreover, with the recent roll-out of LSS5+, we believe Solarvest Holdings Bhd, Pekat Group Bhd and Northern Solar Holdings Bhd are direct proxies, riding on government initiatives.
Meanwhile, we expect the ongoing data centre and AI (artificial intelligence) catalysts to provide buying support for construction and technology stocks.
For a more conservative play, traders may focus on consumer stocks, supported by a stronger ringgit and domestic-led MyKasih cash hand-outs.
The FBM KLCI began the week on a firmer note with contradictory technical indicators as the MACD histogram has expanded negatively while the RSI remained above 70.
Resistance is anticipated around 1,600-1,605 while support is located at 1,565-1,570. – Sept 9, 2025
