BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI snapped a five-day winning streak on Friday as mild profit-taking emerged following the recent rally.
The broader market closed mixed although the FBM ACE Index outperformed with a gain of 0.7%.
Market participation also eased to 1.6 billion shares as investors are still mostly away due to the on-going year-end festivities.
As the market heads into the final trading week of the year, the FBM KLCI is expected to trade in a subdued and range-bound manner as investors turn cautious amid the thinning liquidity and year-end portfolio rebalancing.
While near-term sentiment may continue to draw some support from stable external cues, upside momentum is likely to be capped by profit-taking and the absence of fresh domestic catalysts.
Expectedly, the FBM KLCI has staged a pullback after entering deep into the overbought territory from the recent market rally.
As such, a potential consolidation beckons with the immediate resistance 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 levels.
Malacca Securities Research
We believe the FBM KLCI will end the year firmer, potentially reaching the 1,680-1,690 range, led by banking heavyweights.
As we approach 2026, we view aquaria operator Aquawalk Group Bhd as a key beneficiary, underpinned by: (i) Visit Malaysia 2026 (VNY 2026); (ii) higher tourist footfall due to its strategic location in KLCC; and (iii) a strong net cash position.
We also favour the robust 9M FY2025 recovery demonstrated by ViTrox Corp Bhd given its annualised FY2025 results are likely to surpass that of FY2024, supported by strong demand from hyperscale data centres and the surge in generative AI services.
Lastly, traders may look to Evergreen Max Cash Capital Bhd and Well Chip Group Bhd for opportunities amid an elevated gold price environment by having surpassed the US$4,500/oz level.
The FBM KLCI index extended its positive momentum but with technical indicators showing overbought conditions; the MACD histogram is in its positive territory while the RSI is trading above 70, indicating an overbought signal.
Resistance is anticipated around 1,692-1,697 while support is located at 1,657-1,662. – Dec 29, 2025
