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 on Tuesday by giving up most of its previous session gains as the benchmark index remained in negative territory throughout the trading day and bucking the mostly positive regional markets.
In contrast, the broader market indices continued to advance as overall trading activity improved marginally amid the positive market breadth with volume rising to 2.66 billion shares from 2.53 billion shares in the previous session.
Looking ahead, the FBM KLCI is expected to trade on a cautious footing as investors continue to assess the sustainability of the recent market movements amid lingering external uncertainties.
Attention will be focused on the upcoming release of key US economic data, particularly the ISM Services PMI and Factory Orders which could provide further insights into the health of the US economy and influence global risk sentiment.
Technically, the key index has formed a bearish candlestick and is forming a consolidation pattern. The recent sideways formation is deemed healthy to allow last month’s gains to be digested before fresh legs to take charge.
The immediate resistance remains located at 1,685 points, followed by 1,694 points. On the other hand, the supports are at 1,665 points and 1,658 points respectively.
Malacca Securities Research
Firmer Wall Street movements, a lower OPR (overnight policy rate) environment and supportive structural government drivers create an opportune time for the FBM KLCI to edge higher.
Besides, heightened geopolitical uncertainties may increase demand for gold which should, in turn, support pawnbrokers like Well Chip Group Bhd.
Moreover, the RM100 SARA aid and a stronger ringgit environment should continue to support consumer heavyweights such as 99 Speed Mart Retail Holdings Bhd and Farm Fresh Bhd, particularly under the Visit Malaysia 2026 (VMY 2026) theme.
Meanwhile, M&E (mechanical & electrical) players like Powerwell Holdings Bhd stand to benefit from on-going interest in data centre development while the group’s recent acquisition and Bangladesh development are expected to support its earnings stability.
The FBM KLCI index closed lower although technical indicators point to a mixed picture. While the MACD histogram remains in positive territory, the RSI has weakened below 70, suggesting that upward momentum is softening.
Immediate resistance is anticipated around 1,687-1,692 with support seen at 1,652-1,657. – Jan 7, 2025
