BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI mounted a swift recovery on Wednesday to re-claim the 1,700 psychological level after recovering all its intraday losses from the opening bell.
The broader market also rebounded as market breadth turned positive with 591 advancers outpacing 441 decliners.
Trading activities improved with 2.94 billion shares exchanging hands from 2.86 billion shares in the previous session as traders take on bigger position to capitalise on the recovery.
The FBM KLCI is likely to retain a slight positive bias in the near term as the index continues to find support around key technical levels and sentiment improves from the return of foreign funds inflow.
Investors may remain cautiously optimistic, supported by stabilising global cues following the news of a framework agreement on Greenland had been reached and the possibility of new US tariffs on selected European countries had been averted.
Domestically, attention will tune towards the upcoming Bank Negara Malaysia (BNM) interest rate decision later today which is widely anticipated to remain unchanged amid the stable inflation backdrop along with the sustained consumer spending and healthy labour market data.
Technically, the key index has formed a bullish candlestick to re-claim the 1,700 psychological level.
With the recovery remain on the cards, the resistances are located at 1,712 points and 1,720 points. Meanwhile, the supports are pegged at 1,685 points and 1,665 points respectively.
Malacca Securities Research
With Wall Street closed on a stronger footing during yesterday’s overnight trading, we believe buying interest may spill-over to the local market with the technology sector continuing to sustain its momentum.
Sizeable order books and attractive valuations should underpin resilient trading interest in construction players such as Binastra Corp Bhd, Mitrajaya Holdings Bhd and Inta Bina Group Bhd.
Also, Inta Bina’s project wins from Mitrajaya reflect that project pipelines within the value chains remain robust.
Hence, we view this as positive for the broader downstream value chain, particularly substations as well as underground and overhead utilities.
In view of the elevated gold price, gold-related stocks may be in focus.
Tuesday’s session saw the local bourse close on a firmer note. However, the technical indicators were mixed with the MACD histogram having turned negative but the RSI remained above the 50 level.
Resistance is anticipated around 1,720-1,725 while support is seen at 1,685-1,690. – Jan 22, 2026
