BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI retreated, snapping a three-day winning streak after several index heavyweights traded ex-dividend on Thursday.
The broader market remained entrenched in a consolidation phase with overall trading activity continuing to taper.
Total volumes also skidded to 2.48 billion shares from 2.66 billion shares previously, highlighting the absence of fresh domestic catalysts to spur investor participation with market breadth on a mixed-to-lower note.
The recent recovery appears to have lost momentum with the key index likely to have entered a consolidation phase as the market searches for fresh domestic leads.
In the near term, sentiment is expected to remain cautious with external developments playing a more dominant role in setting the FBM KLCI’s direction.
Given the absence of strong domestic catalysts, investors should brace for a period of sideways consolidation and adopt a more selective approach.
Despite the stickier US inflation data, expectations of an imminent US Federal Reserve rate cut may cushion downside risks, if any.
Technically, the FBM KLCI’s gap-down move yesterday reinforces the view of a consolidation phase with the 1,600 psychological level serving as the immediate resistance, followed by 1,603 points.
On the downside, support is located at 1,570 points and subsequently at 1,560 points.
Malacca Securities Research
With Wall Street’s positive performance overnight, we believe Malaysia’s key index will continue its recovery after a slight pullback yesterday.
With tech giants reporting healthy spending on AI (artificial intelligence) chips, we believe buying support may spillover to local technology players as technology sub-indices experienced a flag breakout.
In view of a rate cut and a weaker US dollar outlook, the price of gold should remain elevated, benefitting Well Chip Group Bhd and Evergreen Max Cash Capital Bhd.
Lastly, with healthy project pipelines, a solid order book and recent contract wins of relatively higher value, we deem CBH Engineering Holding Bhd to be trading at undemanding valuation levels.
The FBM KLCI closed with a slight pullback yesterday with mixed technical signals as the MACD histogram expanded negatively while the RSI stayed well above 50.
Resistance is anticipated around 1,597-1,602 while support is located at 1,562-1,567. – Sept 12, 2025
