BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its decline on Thursday as broad based selling pressure among the key index constituents remain unabated.
The broader market also languished in red as market breadth remained negative with 802 decliners overpowering 372 advancers.
Amid the weak market undertone, trading activity eased to 3.06 billion shares compared with 3.56 billion shares in the previous session.
Looking ahead, the local market is expected to remain defensive as investors adopt a wait-and-see approach ahead of the US Producer Price Index (PPI) release which will be closely scrutinised for signs of easing or persistent inflationary pressures.
A stronger-than-expected PPI reading could reinforce expectations of a prolonged tight monetary stance by the US Federal Reserve, potentially weighing on global equities and prompting risk-off flows into emerging markets, including Bursa Malaysia.
Meanwhile, the renewed volatility on Wall Street overnight could also dampen the prospects of recovery on the FBM KLCI later today.
Technically, the key index has formed another bearish candlestick to wipe off most of its weekly gains.
For now, the immediate resistances are located at the 1,750 points and 1,770 points respectively. Meanwhile, immediate supports are at 1,720 points, followed by 1,700 psychological level.
Malacca Securities Research
Following the FBM KLCI’s two-day correction, we view any further retracements as an accumulation opportunity for banking stocks.
Meanwhile, UUE Holdings Bhd reported a RM6.2 mil net loss in 3Q FY3/2026, primarily due to one-off ESOS (employees share option scheme) expenses; excluding these, UUE would have achieved an adjusted profit of RM8.5 mil.
Thus, we view any share price weakness as a buy-on-the-dip opportunity given that the loss is non-recurring and the group’s RM508.5 mil order book provides strong earnings visibility for the next two to three years.
Lastly, we have a non-rated report on the Hock Soon Capital Bhd IPO (initial public offering) (M+ target price: 66 sen) which application closes today.
Thursday’s session saw the FBM KLCI continued its profit-taking activities with technical indicators showing mixed signals; the MACD histogram is still in the positive territory while the RSI has hooked below the 70 level.
Resistance is anticipated around 1,745-1,750 while support is seen at 1,710-1,715. – Jan 30, 2026
