BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI rebounded to sustain above the 1,600 psychological level during the tabling of Budget 2027 on last Friday.
Market breadth turned positive despite total traded volume easing to 3.3 billion shares as market participants assessed the Budget 2027’s policy measures and market implications.
Looking ahead, we believe the FBM KLCI could build on its recent rebound, supported by Budget 2027 measures aimed at enhancing household disposable income through expanded tax reliefs and targeted assistance which could lend support to domestic consumption and consumer-related sectors.
Continued infrastructure spending and incentives for strategic industries may also provide selective support to market sentiment.
Nevertheless, the sustainability of the recovery will depend on corporate earnings delivery, foreign fund flows and broader external developments, including US interest-rate expectations and geopolitical uncertainties.
The broader market is expected to remain cautiously optimistic, supported by Budget 2027. Trading interest could build onto the consumer sector which languished in the red in recent months amid measures to boost household disposable income.
We reckon the FBM KLCI could extend its recovery with the immediate resistances located at 1,630-1,640 points. Meanwhile, the immediate support is pegged at the 1,600 psychological, followed by 1,580 points.
Malacca Securities Research
We see limited risk of significant post-Budget 2027 profit-taking as the FBM KLCI has already corrected over the past month amid surging US Treasury yields and uncertainty surrounding its potential expansion to 50 constituents.
Post-Budget 2027, we continue to favour the utility sector with Tenaga Nasional Bhd’s (TNB) RM15 bil grid investment supporting transmission and distribution infrastructure, thus benefiting MN Holdings Bhd, Southern Cable Group Bhd and Powerwell Holdings Bhd.
Meanwhile, the RM2.5 bil National NRW (Non-Revenue Water) Reduction Programme targeting 1,900km of ageing pipes could benefit Insights Analytics Bhd.
Lastly, higher STR and SARA allocations of RM16 bil (2026: RM15 bil) should bode well for 99 Speed Mart Retail Holdings Bhd.
Despite the rebound last Friday, the FBM KLCI continued to remain below the MA (moving average) lines with technical indicators remain negative as the MACD has continued to trade in the negative territory while the RSI hovering at the oversold territory.
Key resistance lies at 1,623-1,628 while near-term support is expected around 1,588-1,593. – Oct 12, 2026
