BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Broad-based buying from institutional investors lifted the FBM KLCI higher for a fourth consecutive session on Monday, supported by the continued strength of the ringgit against major currencies.
The broader market, however, ended mixed as market breadth remained negative with 631 decliners topping 591 advancers. Nevertheless, trading activity stayed firm at 3.50 billio shares compared with 3.37 billion shares in the previous session.
Looking ahead, the FBM KLCI may face bouts of consolidation after the recent rally as overbought technical conditions raise the risk of near-term profit taking.
While the underlying sentiment remains supported by improving currency dynamics and selective institutional buying, upside momentum could moderate as investors turn more cautious and lock in gains.
As such, the index is expected to trade in a more measured manner with intermittent pullbacks providing opportunities for selective accumulation rather than a broad-based chase at current levels.
Technically, the key index has gapped up to form another bullish candlestick and breakthrough both the 1,730 and 1,740 resistances.
For now, the next resistances will be located at the 1,750 points and 1,765 points respectively. On the flipside, immediate support is now pegged at 1,720 points, followed by 1,713 points.
Malacca Securities Research
Despite US$/ringgit hitting the RM3.96/US$ level and spurred buying interest in the consumer, financial and property sectors, we suggest waiting for a pullback as many stocks are now slightly overbought.
However, we favour Farm Fresh Bhd given its rounding bottom formation pending for a 52-week-high breakout.
Fundamentally, we favour the group for its margin expansion from ice-cream products, capacity expansion via its Bandar Enstek plant and ASEAN expansion strategy.
The stronger ringgit and VMY 2026 (Visit Malaysia Year 2026) tailwinds should further bolster its financial performance.
Investors could also subscribe to Kee Ming Group Bhd’s initial public offering (IPO) (M+ target price: 69 sen) before its application closes today.
Monday’s session saw the local bourse extended its gains and formed a new 52-week-high with technical indicators showing recovery signals as the MACD histogram approached zero while the RSI exceeded the 70 level.
Resistance is anticipated around 1,759-1,764 while support is seen at 1,724-1,729. – Jan 27, 2026
