BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI tracked the positive momentum on Wall Street to extend its rebound last Friday, securing a 0.4% week-on-week gain.
Market participation, however, turned more subdued as the total trading volume slipped to 2.98 billion shares from 3.45 billion shares in the preceding session.
The broader market also advanced, driven by strength in the technology sector with overall market breadth turning positive with 610 advancers against 445 decliners.
For the week ahead, the local bourse may continue to display a mildly positive bias after finding support above the 1,600 psychological last week.
Extended recovery momentum will be backed by improved sentiment following the recent rebound and optimism surrounding US-China trade developments.
Meanwhile, investors will be closely monitoring the barrage of US corporate earnings releases for further cues on global risk appetite and earnings sustainability.
Technically, the FBM KLCI has formed another bullish candle and continues to hover within the short-term consolidation band.
Further upsides could be present with the key index looking to take a jab towards the near-term resistance of 1,622 points which is followed by 1,638 points. On the flipside, the supports are pegged at 1,600 points and 1,580 points respectively.
Malacca Securities Research
With the US-Malaysia inking a historic reciprocal trade deal, we expect the FBM KLCI to have further room to run, particularly within technology and glove stocks.
After the latest rebound, glove’s average PE ratio stood at 50x, all of which have shifted lower from ~120x early this year.
On the back of the recent US-Malaysia deal, we expect Malaysian gloves to be attractive relative to China glove manufacturers given the widened rate differential.
We like Kossan Rubber Industries Bhd given its focus on specialty gloves which command higher margins while Hartalega Holdings Bhd has undertaken initiatives that eventually may enhance operational efficiency.
We believe technology stocks will trade broadly higher following positive sentiment from the US-Malaysia meeting.
As the FBM KLCI index continues its upward trend, the technical indicators are giving a mixed signal; the MACD histogram is hovering in the negative territory while the RSI is hovering above 50.
Resistance is anticipated around 1,628-1,633 while support is located at 1,593-1,598. – Oct 27, 2025
