BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Buying support in selected index heavyweights during the second half session lifted the FBM KLCI to close in positive territory on Friday.
In contrast, the broader market retreated on subtle signs of profit-taking as reflected by weaker market breadth with 514 gainers against 568 decliners.
Trading activity nevertheless improved with 3.41 billion shares exchanging hands compared with 2.82 billion shares in the previous session, suggesting selective accumulation amid cautious sentiment.
Going forward, the FBM KLCI may continue to trade on a mildly cautious yet resilient footing, supported by intermittent buying interest in heavyweight constituents.
The strengthening ringgit has begun to draw foreign funds back into the Malaysian equity market, thus sustaining upside momentum and provide a measure of stability to the index.
Still, in the absence of fresh catalysts, the FBM KLCI could consolidate as investors maintain a defensive stance following the recent run-up while awaiting clearer direction from both domestic and external developments.
Technically, the key index has formed a bullish candlestick to close a hair away from the 1,720 level resistances.
Following this technical set-up, a decisive breakout should lift the key index towards the next resistance levels seen at 1,730 and 1,740 points. On the downside, immediate support is located at 1,705 points, followed by a stronger support level at the 1,700 psychological level.
Malacca Securities Research
Following weaker results from Intel coupled with the US$/ringgit trading near the RM4.00/US$ level, we believe this may pose a downside risk to the local technology sector.
However, we expect this environment to favour domestic-driven sectors such as banking and consumer which should lead the FBM KLCI index higher.
We also favour Hartanah Kenyalang Bhd as it has secured a RM184.3 mil contract from the Sarawak Works Department (JKR) to upgrade and repair the Sarawak Stadium ahead of the 2027 SEA Games.
Also, we believe Cahya Mata Sarawak Bhd and Affin Bank Bhd stand to benefit from the RM6.0 bil Budget 2026 allocation alongside rising infrastructure development and economic activities in Sarawak.
Friday’s session saw the local bourse extended its gains. However, the technical indicators were mixed with the MACD histogram having expanded towards the negative territory while the RSI is nearing the 70 level.
Resistance is anticipated around 1,734-1,739 while support is seen at 1,699-1,704. – Jan 26, 2026
