BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
More pronounced signs of year-end window dressing lifted the FBM KLCI sharply higher on Friday with the benchmark index closing at its highest level since September 2024.
In tandem with the stronger performance on the key index, the broader market also extended its gains, reflecting improved sentiment and a renewed appetite for risk among investors.
Looking ahead, the FBM KLCI is expected to trade on a cautious yet stable footing in the near term, with gains likely to be capped by intermittent profit-taking following the recent rally.
Market participants are expected to remain selective as they assess the sustainability of the recovery amid lingering external uncertainties and mixed global cues.
In this regard, a key economic event to watch is the release of the second reading of the US 3Q 2025 GDP (gross domestic product) data later this week as any meaningful revision could influence global growth expectations, risk sentiment and cross-border fund flows.
The key index has formed a bullish candlestick to breakout above the 1,658 resistance points. With the RSI approaching the overbought territory, bouts of quick profit taking activities could seep into the picture with the 1,648 points acting as the immediate support, followed by 1,638 points.
Upside-wise, the next resistances are located at 1,675-1,680 points.
Malacca Securities Research
Tracking the positive close in the US, we expect the local bourse to end the year on a firmer footing, potentially reaching the 1,680-1,690 level with banking stocks leading the FBM KLCI.
Meanwhile, following the fire incident at Mid Valley yesterday, any retracement in IGB REIT’s share price could present a “buy-on-dip” opportunity, supported by the strong footfall and high occupancy rates at Mid Valley Megamall and The Gardens Mall.
Additionally, as Wall Street’s rebound was driven by renewed optimism in AI (artificial intelligence), we believe this may provide upside opportunities for local technology stocks.
We favour 3REN Bhd, ITMax System Bhd and Kobay Technology Bhd following their recent breakouts while EMS (electronic manufacturing service) players such as EG Industries Bhd and Ge-Shen Corp Bjd (M+ fair value: RM1.89) could gain attention.
The FBM KLCI index closed in positive territory. The technical indicators are showing a buy signal; the MACD histogram is in the positive territory while the RSI is threading above 50, indicating that the upward momentum is intact.
Resistance is anticipated around 1,680-1,685 while support is located at 1,645-1,650. – Dec 22, 2025
