BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI took a step back to close marginally below the 1,600 psychological level on Wednesday as sentiment was weighed down by the negative overnight performance on Wall Street.
On the other hand, the broader market notched up further gains, driven by stronger market following. Traded volumes improved to 3.63 billion shares from 3.18 billion shares in the prior day despite the largely neutral market breadth.
Going forward, the FBM KLCI may tether around the 1,600 psychological level as investors weigh external cues against domestic market dynamics.
However, sentiments may stay cautious in the near term with market participants closely monitoring the final reading of the US 2Q 2025 GDP (gross domestic product) later tonight for further clarity on the growth outlook of the world’s largest economy.
Technically, the key index has formed a bearish candle even as the key index continues to build a base around the 1,600 psychological level.
The consolidation pattern may persist as market participants search for fresh catalysts – both domestic and external – that could allow the key index to march towards the immediate resistance of 1,611 points, followed by 1,620 points.
On the contrary, should the key index drifts lower, the 1,585 points will serve as the near-term support and thereafter a firmer base at 1,580 points
Malacca Securities Research
Malaysia’s key index is set to open on a weaker note, tracking the retracement on Wall Street as the AI (artificial intelligence)-fuelled rally hit a pause.
However, we favour HE Group Bhd given its recent contract wins which marks its entry into the DC (data centre) segment while we also believe the stock to be trading at attractive regions as compared to its peers.
Moreover, with a sizeable order book, rising demand in substation services and undemanding valuation, we believe traders should focus on CBH Engineering Holding Bhd.
Besides, following the developments in Solarvest Holdings Bhd and the recent roll-out of LSS5 (Large Scale Solar Round 5) packages, we foresee buying interest could sustain in RE counters like Kawan Renergy Bhd and Northern Solar Holdings Bhd.
The FBM KLCI closed lower on Wednesday. However, technical indicators are still showing positive signals with the MACD histogram having expanded above zero and the RSI is holding above 50.
Resistance is anticipated around 1,614-1,619 while support is located at 1,579-1,584. – Sept 25, 2025
