BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI’s rally took a pause last Friday as the key index snapped a five-day winning streak. Still, the local bourse managed to chalk in a 1.6% week-on-week gains.
Traded volumes retreated to 4.04 billion shares down from 4.48 billion shares in the previous session as investors unwound some of their positions.
Meanwhile, market breadth was fairly even albeit many broader market shares still tipped up on continuing rotational plays.
Looking ahead, the near-term outlook may tilt towards consolidation as the market digests recent gains.
While the broader tone remains underpinned by selective buying support, profit-taking activities could limit further upsides.
Hence, trading could turn more rotational with participants likely to stay cautious while awaiting for fresh catalysts to sustain momentum.
From the technical perspective, the FBM KLCI is retreating from overbought levels and further mild profit taking could be on the cards.
A pullback is deemed healthy at this juncture, with 1,620 points acting as the immediate support, followed by 1,611 points. On the other hand, near-term resistance is located at 1,660 points and thereafter at 1,675 points.
Malacca Securities Research
With risk-off sentiment emerged across Wall Street, we expect profit-taking activities to pick up after the FBM KLCI’s recent rally above 1,600.
However, we believe traders may position in KJTS Group Bhd (M+’s target price: RM2.00) as they are the only listed player in Malaysia under the energy efficiency segment with sizeable exposure to the ~RM41 bil cooling energy industry.
This is further supported by the group’s recent RM1.5 bil StonePeak JV (joint venture) which we believe would complement its upfront capex by strengthening its recurring revenue base which makes up 75% of its top line.
Moreover, we expect RE (renewable) players like Solarvest Holdings Bhd and Samaiden Group Bhd to secure more projects from the LSS5+ packages as we gather that most of them are in the stage of finalisation.
Overall, the FBM KLCI continued to form new high with technical indicators showing positive signals as the MACD histogram has started trading at its positive territory while the RSI has broken above the 70 level.
Resistance is anticipated around 1,650-1,655 while support is located at 1,615-1,620. – Oct 6, 2025
