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 on Thursday after hovering in the positive territory for most of the trading session, lifted by mild bargain hunting activities.
With market breadth turning more favourable, overall trading activity improved as traded volumes rose to 4.74 billion shares, up from 3.67 billion shares in the previous session.
Consequently, the lower liners also rebounded, reflecting improved risk appetite and broader participation.
Following the recent rebound, FBM KLCI is now attempting to build a base and set the tone for a period of consolidation, hence providing room for the index to stabilise before potentially resuming its upward trajectory amid the improving market sentiments.
The gradual return of buying interest, particularly in construction, technology and consumer stocks, suggests investors are positioning ahead of potential fiscal measures.
Market direction is likely to remain event-driven in the near term with all eyes set on the tabling of Budget 2026 which could provide fresh policy cues and sectoral catalysts.
The FBM KLCI has formed a doji candlestick yesterday, implying a relatively directionless movement. Should a resumption of the recovery stance take precedence, the immediate resistances are located at 1,638 points and 1,660 points respectively.
On the flipside, the immediate support levels remain pegged at 1,620 points and 1,611 points respectively.
Malacca Securities Research
In line with Wall Street’s negative lead, we expect the FBM KLCI to trade on a cautious note as participants may adopt a “wait-and-see” approach ahead of Budget 2026 which is set to be released this evening.
Moreover, we believe traders could start to position themselves in the glove sector, supported by Top Glove Corp Bhd’s earnings beat and the potential for a turnaround in industry sentiment.
Furthermore, we are of the opinion that glove stocks are trading at deep value with structural demand and on-going supply rationalisation expected to provide the sector with a long-term upside.
On the commodities front, we believe Aumas Resources Bhd, Poh Kong Holdings Bhd, Tomei Consolidated Bhd, Evergreen Max Cash Capital Bhd and Well Chip Group Bhd serve as proxies to the surge in gold prices.
The FBM KLCI closed higher on Thursday. Moreover, technical indicators are showing positive signals as the MACD histogram trended within positive territory while the RSI hovered above the 50 level.
Resistance is anticipated around 1,644-1,649 while support is located at 1,609-1,614. – Oct 10, 2025
