BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Tracking the positive takeaways from the World Economic Forum (WEF), the FBM KLCI advanced in tandem with regional markets on Thursday, thus reinforcing its position above the 1,700 psychological level.
The broader market also closed higher with market breadth remaining positive as 622 advancers toppled 435 decliners.
Trading activity, however, softened, with 2.82 billion shares exchanging hands compared with 2.94 billion shares in the previous session, suggesting a degree of caution beneath the surface.
Looking ahead, the FBM KLCI may trade in a mildly cautious tone despite holding above the 1,700 psychological level as investors await key global policy signals, particularly the Bank of Japan’s (BOJ) interest rate decision later today.
Any shift in the BOJ’s policy stance could influence regional fund flows and currency movements, potentially spilling over into local equities.
In the near term, buying interest is likely to remain selective particularly after the past two sessions of gains with the index expected to consolidate as investors balance supportive global developments against policy uncertainty and moderating trading participation.
Technically, the key index has gapped up to sustain its intraday gains well above the 1,700 psychological level.
For further upsides, the resistances are located at 1,720 points and 1,730 points. Meanwhile, the supports are pegged at 1,700 points and 1,685 points respectively.
Malacca Securities Research
With Bank Negara Malaysia (BNM) keeping the OPR (overnight policy rate) unchanged, the ringgit has continued to strengthen by moving towards RM4.04/US$.
We anticipate that the recent steady foreign inflows will persist, hence providing upside to the local market, particularly within the banking sector.
Moreover, on-going pressure for additional easing cycles by the US Federal Reserve should bolster the ringgit.
Thus, consumer heavyweights such as 99 Speed Mart Retail Holdings Bhd while serving also as a proxy for Visit Malaysia Year 2026 (VMY2026) theme could also benefit from a strong ringgit.
Lastly, data centre project pipelines remain intact, following contract wins by MN Holdings Bhd and Mitrajaya Holdings Bhd may eventually translate positive earnings growth in the utility segment.
Tuesday’s session saw the local bourse closed on a firmer note. However, the technical indicators were mixed with the MACD histogram having turned slightly negative while the RSI maintained above the 50 level.
Resistance is anticipated around 1,732-,737 while support is seen at 1,697-1,702. – Jan 23, 2026
