BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI took a step back on Thursday after having traded in negative territory throughout the session.
Broader market indices closed higher as market breadth was positive with 579 advancers outpacing 489 decliners.
Traded volume improved to 2.79 billion shares from 2.73 billion shares in the previous session as traders took on a more active stance.
Looking ahead, the FBM KLCI is expected to trade in a cautious and range-bound manner as investors remain selective amid the mixed market signals.
Market participants will be kept busy monitoring several key economic data releases in Malaysia, including industrial production, retail sales and the unemployment rate which could provide clearer insights into the strength of domestic economic momentum.
While intermittent bargain hunting may lend some support at lower levels, any recovery is likely to attract quick profit-taking in the absence of strong leads.
Technically, the key index has formed another hammer candlestick and continues to trade within the short-term consolidation band.
An extended consolidation remains in place with the immediate resistance located at 1,685 points, followed by 1,694 points. Meanwhile, the supports are located at 1,665 points and 1,658 points respectively.
Malacca Securities Research
Closer to home, Wall Street’s weaker overnight performance may spill over to stocks on the FBM KLCI.
However, recently listed IPOs such as Insights Analytics Bhd remain elevated, supported by the on-going Sarawak water infrastructure capex which is expected to trend healthily. We see the group as a key beneficiary given its geographical proximity and proven track record.
Moreover, buying interest seems to be re-surfacing in small caps following which we believe the “picks and shovels” play is emerging for the data centre value chain with a focus on M&E (mechanical and electrical), substations, cables and power transmission towers.
We therefore favour Cheeding Holdings Bhd, CBH Engineering Holding Bhd, Powerwell Holdings Bhd and Pekat Group Bhd.
Profit-taking emerged in Thursday’s session. Technical indicators pointed towards further downside with the MACD histogram turning negative while the RSI is declining towards 50, suggesting that upward momentum is softening.
Immediate resistance is anticipated around 1,684-1,689 with support seen at 1,649-1,654. – Jan 9, 2026
