BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI was hit by quick profit taking on Thursday, slipping back below the 1,600 psychological level amid weakness in selected banking, utilities and PETRONAS-linked heavyweights.
The broader market also ended mostly lower as profit-taking activities emerged. Total traded volume eased to 2.57 billion shares from 3.13 billion shares previously, reflecting investors’ cautious stance and preference to remain on the sidelines amid the prevailing indifferent sentiment.
Going forward, the FBM KLCI is likely to trade with a cautious bias as global uncertainties continue to weigh on investor sentiment.
While the pullback below the 1,600 level reflects near-term profit-taking, downsides may be cushioned by expectations of sustained domestic consumption and on-going macro policy support.
Still, foreign fund flows will remain a key swing factor with investors closely monitoring shifts in global risk appetite.
Economy-wise, investors will be keeping a close tab on Malaysia’s trade data later today.
Technically, the key index formed a gap down and a bearish candle to close marginally below the 1,600 psychological level whereby the near-term support at 1,585 points may be re-tested.
If the aforementioned level fails to hold, the 1,580 level will serve as the next support. Conversely, the FBM KLCI needs to re-claim the 1,600 level in bid to charge towards the resistances at 1,617 points which is followed by 1,620 points.
Malacca Securities Research
In view of Wall Street’s positive lead, we expect the FBM KLCI to trade on a firmer note, underpinned by the interest rate downcycle in the US which may further improve liquidity in emerging markets.
Also, the overall positive sentiment for the tech sector in the US may boost buying support for local technology stocks in the near term.
However, we expect less appetite for export-oriented companies due to the tariff environment and weakness in the greenback.
On the data centre front, we believe the theme is here to stay with the Chinese operator Zdata reportedly seeking a US$500 mil private loan recently.
The FBM KLCI took a breather after an overstretched rally from the Sept 2 low. However, technical indicators are showing positive signals as the MACD histogram has expanded above zero while the RSI is approaching 70.
Resistance is anticipated around 1,613-1,618 while support is located at 1,578-1,583. – Sept 19, 2025
