BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI closed off the week on a weaker manner last Friday after staying in the negative zone for the entire trading session and consequently recorded an 0.8% week-on-week decline.
As cautiousness returned to the fore, overall trading activity dipped with traded volumes falling to 3.23 billion shares from 4.74 billion shares from a day earlier.
Likewise, lower liners also retreated, weighed down by profit-taking activities amid a more subdued market tone.
The recently tabled Budget 2026 may provide incremental catalysts to sustain investor sentiment, particularly with the government maintaining its commitment to fiscal support in strategic areas such as infrastructure development, digitalisation, green transition and social assistance.
Also, the absence of major policy shocks or new taxes was also seen as market-friendly, thus alleviating near-term concerns over corporate margins and consumer spending.
Although market tone is likely to remain cautious from the US-China trade developments, it could still be supported by selective buying interest as the key index continues to hold above the 1,600 psychological level.
Technically, the FBM KLCI has formed a hammer candlestick with consolidation likely to extend over the near term.
A successful breakthrough above the upper band of the consolidation zone may lift the key index towards the immediate resistance located at 1,638 points and thereafter at 1,660 points. Meanwhile, the immediate support levels remain pegged at 1,620 and 1,611 points respectively.
Malacca Securities Research
With the negative performance in the US, we anticipate FBM KLCI to start with a knee jerk selling pressure but bargain hunting should emerge as the fairly positive Budget 2026 was being tabled.
The full implementation of e-invoicing in 2026, may benefit AutoCount Dotcom Bhd which started its breakout last Friday.
Other budget-related beneficiaries include technology, utilities and renewable energy sectors, underpinned by government’s AI push, water projects and LSS6 programme.
Besides, investors can also look into the upcoming IPO (initial public offering) Insights Analytics Bhd (M+ target price: 68 sen) which is closing today.
The FBM KLCI continued to trade above the EMA lines. However, the technical indicators are showing softening signs with the MACD histogram started to expand into the negative territory while the RSI is hooking down.
Resistance is anticipated around 1,637-1,642 while support is located at 1,602-1,607. – Oct 13, 2025
