BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resumed trading on an upbeat manner on Wednesday as the key index strengthened its position above the 1,600 psychological level, supported by gains in more than two-thirds of the key index components.
The broader market also fared well as evidenced by the positive market breadth. Total traded volumes expanded to 3.13 billion shares from 2.23 billion shares previously, underscoring stronger investor participation and suggesting that buying momentum is gaining traction across both blue chips and lower liners.
Looking ahead, we maintain a positive bias on the local bourse, underpinned by the US Federal Reserve’s move to trim interest rates by 25 basis points overnight which is largely in line with market expectations.
A more accommodative monetary stance by the Fed would likely improve global liquidity conditions, bolstering risk appetite and potentially channel renewed foreign fund inflows into emerging equities which was noticeable yesterday with Malaysia set to benefit from its relatively attractive valuations and stable earnings outlook.
From a technical standpoint, the key index may attempt to find stability above the 1,600 psychological level with immediate resistance seen at 1,617 points, followed by 1,620 points. On the downside, support is located at 1,585 points with stronger footing at 1,580 points.
Malacca Securities Research
Following the Fed’s rate cut decision, we expect the FBM KLCI to continue trading higher today as improving global liquidity should bode well for Asian and emerging markets, including Malaysia.
However, with the 19% tariff on Aug 1 coupled with a weakening greenback, we believe export-oriented sectors will be negatively impacted in the upcoming results.
On the flip side, domestically-driven sectors such as construction, utilities, REITs, banks and consumer products & services should be in focus.
Meanwhile, with the news of Kuala Lumpur Kepong (KLK) launching its KLK TechPark, we remain bullish on KLK as well as property developers with industrial or tech park exposure, including Eco World Development Group Bhd, Sime Darby Property Bhd and Mah Sing Group Bhd.
The FBM KLCI continued to trade above the 1,600 level with technical indicators showing positive signals as the MACD histogram has expanded above zero while the RSI is approaching 70.
Resistance is anticipated around 1,626-1,631 while support is located at 1,591-1,596. – Sept 18, 2025
