BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Led by renewed interest in banking stocks, the FBM KLCI extended its upward momentum on Tuesday by closing above the key 1,700 psychological threshold for the first time since March 2019,
In contrast, the broader market eased amid mild profit-taking despite improved trading activity as volume rose to 3.5 billion shares from 3.1 billion shares previously while market breadth was fairly even with 556 advancers against 548 decliners.
Looking ahead, sentiment on the FBM KLCI may turn more cautious after its recent advance beyond the 1,700 psychological level as the key index has entered into overbought territory.
While the underlying uptrend remains intact, a near-term consolidation or mild pullback is likely on the cards as profit taking activities could take precedence.
Investors will also be monitoring the upcoming US retail sales and producer price index (PPI) data for further cues on the world’s largest economy growth trends.
Technically, the key index gapped up to form another positive candlestick and now looks to defend the 1,700 psychological level.
For now, the next resistances are located at 1,712 points and 1,720 points. Meanwhile, the supports are pegged at 1,685 points and 1,665 points respectively.
Malacca Securities Research
In view of Wall Street negative closing, a pullback could occur in the FBM KLCI.
However, the elevated ringgit at the RM 4.05 level would be able to act as buffer for the benchmark index, supported by the banking, consumer goods and REIT sectors.
Meanwhile, we view IGB Bhd’s RM 1.2 bil sale of St Giles London positively as the disposal provides the group with proceeds for future expansion.
Besides, we favour AirAsia X Bhd, Oriental Kopi Holdings Bhd and Aquawalk Group Bhd amid the Visit Malaysia 2026 (VMY 2026) campaign with AAX appearing on the verge of a breakout.
Lastly, investors could subscribe to the upcoming IPO (initial public offering) of ISF Group Bhd (M+ target price: 46 sen) which will be closing its application today.
Tuesday session saw the local bourse extended its gains with technical indicators having turned positive as the MACD histogram expanded into the positive territory while the RSI broke above the 70 level.
Resistance is anticipated around 1,723-1,728 while support is seen at 1,688-1,693. – Jan 14, 2026
