BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI marched higher for the fifth consecutive session on Wednesday (Dec 24) to close at its highest level in 15 months amid the on-going year-end window dressing activities.
The broader market, however, retreated as mild profit taking emerged within across the small-and-mid cap stocks.
Market participation remained tepid with just about 2 billion shares traded due to the lack of market interest.
As we head into the final day of the trading week, the FBM KLCI is expected to trade on a firmer footing, supported by continued window dressing activities and sustained buying interest in selected blue-chip counters.
Nevertheless, gains may be capped on potential profit-taking after the recent rally. Market sentiment is likely to stay mildly positive with index movements guided by heavyweight stocks while broader market participation may remain selective.
While the FBM KLCI has formed another bullish candlestick after recovering all its intraday losses, the RSI indicator is increasingly overbought, highlighting potential pullback in the interim.
For now, the immediate resistance is located at 1,680 points, followed by the 1,700 psychological level. Meanwhile, the near-term supports are pegged at the 1,658-1,647 points.
Malacca Securities Research
As we approach the end of the year, we believe the local bourse will continue to trade higher, particularly the FBM KLCI.
Notably, in more than 85% of the instances over the past 25 years, the benchmark index has ended on a positive note in December with an average return of nearly 2%.
Meanwhile, given the re-emergence of the AI (artificial intelligence) theme in the US, we believe this could bode well for technology counters like Mi Technovation Bhd, Coraza Integrated Technology Bhd and MClean Technologies Bhd.
Over on the ringgit strength, we favour domestic-driven sectors like consumer and construction. Additionally, traders could position themselves in data center-related stocks, including Powerwell Holdings Bhd and Southern Cable Group Bhd.
The FBM KLCI closed in positive territory. The technical indicators are showing a buy signal; the MACD histogram is in the positive territory while the RSI is trading above 50, indicating an upward momentum.
Resistance is anticipated around 1,693-1,698 while support is located at 1,658-1,663. – Dec 26, 2025
