BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI began the year on a weaker footing as profit taking activities from the year-end window dressing activities were more pronounced on Friday.
The broader market indices, however, were mixed with the FBM ACE (+1.0%) out-performing as trading interest rotated towards the smaller-cap stocks.
Despite the negative market breadth, trading activities improved modestly with 2.1 billion shares exchanging hands.
The FBM KLCI is expected to trade within a narrow range over the near term as the market continues to digest recent profits following the year-end window dressing activities.
Overall sentiment may remain balanced with investors maintaining a wait-and-see stance in the absence of strong near-term catalysts.
Following the weakness on Wall Street last Friday, movements in the index are likely to be influenced by external market developments and prevailing fund flow trends.
Also, geopolitical tensions are set to weigh on market sentiment following the US attack on Venezuela on Saturday (Jan 3) and the capture of President Maduro.
Technically, the key index has formed another bearish candlestick and looks to head for a downward bias consolidation trend.
The immediate support is pegged at 1,665 points, followed by 1,658 points. The resistances, meanwhile, are at 1,685 points and 1,694 points respectively.
Malacca Securities Research
Closer to home, we believe sentiment may turn negative in the near term due to the Venezuelan situation.
Moreover, given the volume of energy supplies imported from Venezuela, China may retaliate, potentially causing a spike in oil and gold prices.
This would create a natural demand for gold from which Well Chip Group Bhd, Evergreen Max Cash Capital Bhd and PappaJack Bhd are likely to benefit. Notably, Well Chip’s outstanding loan book is one of the largest as compared to its listed peer.
Looking beyond external concerns, we expect Visit Malaysia 2026 (VMY 2026) to benefit the consumer, tourism and REIT sectors; Aquawalk Group Bhd experienced a breakout last Friday and we expect a follow-through.
The FBM KLCI index closed in negative territory. Moreover, technical indicators point to a mixed juncture; the MACD histogram remains in positive territory while the RSI has hooked down below 70, indicating momentum is softening.
Resistance is anticipated around 1,684-1,689 while support is located at 1,649-1,654. – Jan 5, 2026
