BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The local bourse extended its slide on concerns over elevated US Treasury yields as well as the higher crude oil prices.
Nevertheless, market breadth remained weak as the lower liners as the lower liners closed in the negative territory with traded volumes slipping to 3.1 billion shares.
Moving forward, we expect the FBM KLCI to trade with a cautious tone with investors likely to keep a close tab on the movements of US bond yields and oil prices closely.
The focus will also turn to the US unemployment rate data later tonight as any signs of a softer labour market could influence expectations for the Federal Reserve’s monetary policy path and provide some relief to global equity sentiment.
The broader market is also likely to remain cautious as the prevailing uncertainties continues to weigh onto risk appetite. Still, selective accumulation could emerge in fundamentally sound counters should external headwinds ease.
With the key index slipping into the oversold territory, potential mild bargain hunting may re-surface amid the easing US 10-year Treasury yield as well as the pullback in oil prices.
The immediate resistances are located at 1,657-1,663 points. The supports are pegged at 1,625 points, followed by 1,620 points.
Malacca Securities Research
Tracking the rebound on Wall Street, we expect sentiment on the FBM KLCI to improve today.
However, we believe investors will remain selective by focusing on potential beneficiary sectors and stocks ahead of the upcoming Budget 2027 announcement next Friday.
Investors could look at ViTrox Corporation Bhd which is seeing stronger demand for high-precision inspection solutions amid the structural shift towards AI (artificial intelligence) infrastructure and advanced packaging.
Likewise, on QES Group Bhd following its expansion into China’s X-ray semiconductor inspection market and Hartanah Kenyalang Bhd which has a record-high order book of RM851 mil (~6.8x FY2025 revenue), thus potentially benefitting from infrastructure-related initiatives in East Malaysia under Budget 2027.
The local bourse resumed its decline on Thursday with technical indicators remaining weak as the MACD histogram has moved further into negative territory while the RSI fell below 30.
Key resistance is pegged at 1,645-1,650 while support is seen at 1,610-1,615. – Oct 2, 2026
