BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI managed to recover all its intraday losses to close higher on Thursday as the key index recorded its fifth straight session of gains, lifted by late buying on selected index linked stocks.
The broader market, however, took a step back as market breadth turned weaker with 582 decliners outmuscling 503 advancers.
Trading activities remain stable with 3.25 billion shares exchanging hands, up from 3.12 billion shares in the previous session.
Looking ahead, the FBM KLCI is likely to trade on a cautiously optimistic footing after extending its rally for a fifth consecutive session as upside momentum could moderate amid signs of weakening broader market participation.
Despite the strong intraday buying support yesterday, near-term sentiment could turn more selective as investors assess the sustainability of recent gains while attention may shift to key external cues movements on Wall Street overnight which could influence risk appetite and set the near-term direction for the local market.
Technically, the key index has formed a hammer candlestick to defend the 1,700 psychological level.
With upsides remain on the cards, the resistances are located at 1,720 points and 1,730 points. Meanwhile, the supports remain pegged at 1,685 points and 1,665 points respectively.
Malacca Securities Research
The broadly positive buying support from Wall Street may spill over to the local front.
Meanwhile, we believe the Bursa Technology sector will be in focus in the near term as TSMC’s (Taiwan Semiconductor Manufacturing Co) 4Q results are poised to benefit several names like:
- Frontken Corp Bhd which provides specialised cleaning and surface treatment services for TSMC’s chip production equipment; and
- Inari Amertron Bhd which has strong exposure to Broadcom (a key TSMC customer) and stands to gain from higher testing and packaging demand.
Furthermore, as TSMC’s CoWoS (chip-on-wafer-on-substrate) capacity remains tight, Intel is seeing strong demand for its advanced packaging solutions, potentially benefitting UWC Bhd, Kobay Technology Bhd and 3REN Bhd.
The local bourse continued to trend higher in Thursday’s session with technical indicators remaining in positive territory. The MACD histogram expanded above the zero line while the RSI stayed above the 70 level.
Resistance is anticipated around 1,730-1,735 while support is seen at 1,695-1,700. – Jan 16, 2026
