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 from its intraday high but managed to hold onto meagre gains on Tuesday as the key index defended the 1,600 psychological level.
Meanwhile, the broader market closed mostly on a firmer note on the back of improved liquidity.
Traded volumes climbed to 3.18 billion shares from 2.79 billion shares in the previous session as investors capitalise on the positive market sentiments to take on bigger position. Gaining stocks also topped losers for the day.
Looking ahead, the FBM KLCI may find near-term support around the 1,600 psychological level with a consolidation pattern likely to be established.
Improved liquidity suggest investors are gradually positioning for the lower liners. On the global front, the US Federal Reserve Chair Jerome Powell’s remarks on stretchy valuations along with the unrelenting selling activities from foreign funds may cap further near-term gains.
Technically, the key index has formed a doji candlestick to maintain above the 1,600 psychological level.
Should the aforementioned level remain defended, the key index may build a firmer base before attempting to march towards the immediate resistance at 1,611 points, followed by 1,620 points.
On the flipside, near-term support is pegged at 1,585 points and thereafter a firmer base at 1,580 points.
Malacca Securities Research
Taking a cue from Wall Street’s negative lead, we expect profit-taking activities on the FBM KLCI’s key index with the technology sector likely to see selling pressure.
However, we continue to favour ITMAX System Bhd as its recent contract wins have solidified its recurring revenue, thus providing earnings visibility for at least the next 15-20 years.
We also see trading opportunities within construction stocks like Binastra Corp Bhd and Inta Bina Group Bhd given their (i) robust earnings results from key developers; (ii) sizeable order book coverage; and (iii) undemanding valuations.
Lastly, with the recent developments in Solarvest Holdings Bhd, we believe buying interest may emerge in renewable energy-related stocks such as Kawan Renergy Bhd, supported by government initiatives like the National Energy Transition Roadmap (NETR) and the roll-out of LSS5 (Large Scale Solar Phase 5) packages.
The FBM KLCI eked out a marginal gain on Tuesday. Moreover, technical indicators are showing positive signals with the MACD histogram having expanded above zero and the RSI holding above 50.
Resistance is anticipated around 1,618-1,623 while support is located at 1,583-1,588. – Sept 24, 2025
