BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI succumbed to heavy selling pressure on Friday, briefly slipping below the key 1,600 psychological level and ended the week with a 0.8% week-on0-week decline.
The weakness was broad-based with the FBM Small Cap and FBM ACE indices extending their downtrend to a fifth consecutive week.
Meanwhile, market breadth remained firmly negative as 815 decliners outpaced 353 advancers.
Looking ahead, the FBM KLCI may trade in a more measured tone following the conclusion of the quarterly reporting period with investors re-assessing corporate fundamentals post earnings season against a still-fragile macro backdrop.
In the absence of fresh earnings catalysts, sentiments could remain cautious, particularly as markets await Malaysia’s upcoming manufacturing PMI reading which has remained in contraction for the past 17 consecutive months.
Nevertheless, the conclusion of Sabah state election will remove some political uncertainties and could provide mild support to the local market.
Technically, the key index has formed another bearish candlestick as the key index hovered near the key 1,600 support level.
Further downside risks are on the cards should the aforementioned level fails to hold with the next supports at 1,590-1,585 points. Meanwhile, the immediate resistances are located at 1,611-1,620 points.
Malacca Securities Research
Closer to home, we believe the positive sentiment from the US may spillover to stocks on the local front, especially on the domestic-driven sectors in view of a stronger ringgit environment.
In the construction sector, Lim Seong Hai Capital Bhd’s (LSH) sticky solutions provide healthy cash flow and consensus is looking at LSH’s earnings to reach ~RM115.7 mil for the next financial year.
We opine the fair range should be at least RM2.62 by pricing it at +2SD of small to mid-cap construction players which is all in all still far below the consensus fir value of ~RM3.30.
Meanwhile, Life Water Bhd has finally caught up in valuation against its closest peer Spritzer Bhd but we believe the greater-than-average net margins of the former may boost the share price higher.
The FBM KLCI index closed in negative territory. The technical indicators are showing a sell signal; the MACD histogram is hovering in negative territory while the RSI is below 50, indicating downward momentum.
Resistance is anticipated around 1,619-1,624 while support is located at 1,584-1,589. – Dec 1, 2025
