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 pullback after coming off from its intraday low, largely bogged down by the concerns over the rising US treasury yields as well as the unresolved conflict in the Middle East.
Trading activity, however, edged higher with total volume rising to 4.08 billion shares from 3.32 billion shares in the previous session.
Market breadth was fairly even with 590 decliners against 575 advancers on rotational play.
Following the recent weakness, the FBM KLCI could attempt to find stability following the US$30 bil reciprocal tariff reduction arrangement signed during China’s President Xi Jinping visit to Washington over the weekend.
However, persistent geopolitical uncertainties after US President Donald Trump rejected Iran’s latest proposal to re-open the Strait of Hormuz elevated bond yields and potential inflationary pressures could continue to cap near-term upside.
Investors should also monitor Malaysia’s upcoming PPI data, particularly for signs of sustained cost pressures following the sharp increase in producer prices earlier this year which could influence inflation expectations and the outlook for domestic monetary policy.
Under the prevailing weakness, key index could remain volatile over the near-term with the immediate resistances located at 1,678-1,690 points. The supports remain at 1,660 points, followed by 1,655 points.
Malacca Securities Research
Tracking Wall Street’s positive close last Friday coupled with easing US-China trade tensions following the summit, we expect the FBM KLCI to rebound today.
Meanwhile, market direction could be influenced by the upcoming tabling of Budget 2027 on Oct 9 with investors likely to focus on potential beneficiaries within the construction, utilities, technology and consumer sectors.
Stock-wise, we favour Ambest Group Bhd and Gamuda Bhd with the former benefiting from rising demand for precision engineering components amid the global semiconductor upcycle while the latter is supported by a record RM62.5 bil outstanding order book, an equivalent of approximately 3.9x FY2025 revenue.
The FBM KLCI continued to trade below the MA (moving average) lines with technical indicators showing mixed signals as the MACD histogram has started expanding toward the positive territory while the RSI holds below 50.
Overhead resistance sits at 1,686-1,691 with support established at 1,651-1,656. – Sept 28, 2026
