BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI ended in the red again on Wednesday after spending the entire session in the negative territory, reflecting persistent selling pressure in selected heavyweights.
The losses were also largely in line with weak sentiments among its regional peers. Meanwhile, the broader market finished mixed with market breadth turning slightly favourable as 515 advancers offset 472 decliners.
The overnight US Federal Reserve rate cut as widely anticipated is expected to provide a more supportive backdrop for regional and domestic equities, including the FBM KLCI.
Lower US interest rates typically ease global financial conditions, reduce bond yield pressures and bolster risk appetite which could encourage renewed foreign inflows into emerging markets.
For Malaysia, the more accommodative external environment may help stabilise investor sentiment following the volatility of late.
The key index gapped down before recouping most of its intraday losses to form a hammer candlestick, suggesting potential recovery over the short-term.
Should a rebound materialise, upsides are limited towards the immediate resistance at 1,620 points, followed by 1,630 points. Meanwhile, the near-term supports remain envisaged at the 1,600-1,595 points.
Malacca Securities Research
We expect the FBM KLCI to rebound following the US Fed’s interest rate cut which would benefit the consumer and financial sectors.
Meanwhile, we are positive on UWC Bhd’s breakout yesterday, supported by:
- Improved margins driven by its expansion into front-end semiconductor engineering;
- Strong AI (artificial intelligence)-led demand for high-performance chip equipment; and
- The group’s continued focus on 5G network equipment, autonomous vehicle-related chip testers and EV (electric vehicle) battery tester businesses.
Traders may also look at Kobay Technology Bhd and 3REN Bhd with the former showing 1Q FY2026 profit recovery while the latter is poised for a potential breakout continuation.
The FBM KLCI index closed in negative territory. The technical indicators are showing a sell signal; the MACD histogram is in the negative territory while the RSI is trading below 50, indicating that the momentum is negative.
Resistance is anticipated around 1,626-1,631 while support is located at 1,591-1,596. – Dec 11, 2025
