BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its decline on Wednesday after the key index traded in the negative territory throughout the trading session.
Despite the persistently weak market breadth, overall trading activity picked up modestly as volumes improved to 3.67 billion shares from 3.48 billion shares in the previous session.
Meanwhile, lower liners also trended lower, reflecting continued caution among investors amid a lack of fresh catalysts while market breadth stayed negative.
For the day ahead, the general market sentiment is expected to remain cautious as investors digest recent losses and re-assess their risk appetite amid the FBM KLCI’s continued weakness.
While bargain-hunting activities may emerge in selected heavyweights after the recent pullback, upsides could stay capped amid lingering external uncertainties and the absence of strong domestic catalysts with market players also awaiting for the unveiling of Budget 2026 for new leads.
From a technical perspective, the FBM KLCI gapped down and extended its pullback to form a hammer candlestick, indicating subtle signs of near-term buying support.
Nevertheless, the consolidation spell still beckons with immediate resistances located at 1,638 and 1,660 points respectively. On the flipside, the near-term support levels are pegged at 1,620 and 1,611 points.
Malacca Securities Research
Taking a cue from Wall Street’s positive lead, we expect the local front to open on a firmer footing.
We anticipate buying interest in technology stocks, particularly in EMS (electronics manufacturing services) players like urelius Technologies Bhd given its proxy towards Industry 4.0 as well as its sizeable current order book.
Moreover, we like HE Group Bhd given its undemanding valuation and its entry into data centre (DC) plays.
Besides, we opine that with the rising gold price, bullion proxies like Aumas Resources Bhd, Poh Kong Holdings Bhd, Tomei Consolidated Bhd and Niche Capital Emas Holdings Bhd may play a catch-up in tandem with their regional peers in Hong Kong and the US.
Lastly, ahead of Budget 2026 tabling this Friday (Oct 10), we believe market participants will focus on allocations towards the construction, building materials and utilities sectors.
The FBM KLCI closed lower on Wednesday. However, technical indicators are showing positive signals as the MACD histogram trended within positive territory while the RSI hovered above the 50 level.
Resistance is anticipated around 1,642-1,647 while support is located at 1,607-1,612. – Oct 9, 2025
