BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI traded in positive territory throughout the session before reversing most of its intraday gains to post only miniscule gains on Wednesday.
Market sentiment improved notably with advancers outpacing decliners by a ratio of 726 to 426 stocks.
Riding on the upbeat tone, the broader market also advanced as trading volume rose to 4.26 billion shares from 3.66 billion shares in the previous session, reflecting renewed investor interest as participants capitalised on rotational opportunities across key sectors while picking up some recently sold down stocks.
Going forward, the FBM KLCI is expected to hold above the 1,600 psychological level by sustaining its recovery momentum as external developments take a backseat.
Aiding the recovery process is the International Monetary Fund (IMF) maintaining its projections for Malaysia’s real gross domestic product (GDP) growth at 4.5% year-on-year (yoy) in 2025 and 4.0% yoy in 2026 respectively.
Nonetheless, selective profit-taking may intermittently cap gains as investors remain watchful of global macro signals, including US corporate earnings releases.
Technically, the FBM KLCI formed an inverted hammer candlestick and is poised for a consolidation.
Investors will continue to monitor the recovery progress with a potential breakthrough above the 1,622 level that may lift the key index towards the next resistances located at 1,635 points and 1,657 points respectively.
Meanwhile, the supports are located at 1,611 points and 1,600 points respectively.
Malacca Securities Research
Tracking Wall Street’s positive overnight performance, we expect the FBM KLCI to follow suit and extend its bullish momentum.
Meanwhile, with Budget 2026 reinforcing the National Energy Transition Roadmap (NETR) via allocations for LSS6 solar projects, we remain bullish on RE (renewable energy)-related stocks like Samaiden Group Bhd, Kawan Renergy Bhd and Northern Solar Holdings Bhd.
The NETR also highlights Tenaga Nasional Bhd’s RM43 bil grid upgrades which will benefit sub-station and cable-related companies such as MN Holdings Bhd, Jati Tinggi Group Bhd and Powerwell Holdings Bhd.
Lastly, traders may focus on East Malaysia-related stocks amid higher allocations for Sabah (RM6.9 bil) and Sarawak (RM6.0 bil) alongside the upcoming Sabah state election.
The FBM KLCI continued to trade on higher-lows pattern but with technical indicators trading on a weakening sign as the MACD histogram has expanded into the negative territory while the RSI is hooking down.
Resistance is anticipated around 1,626-1,631 while support is located at 1,591-1,596. – Oct 16, 2025
