BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI snapped its five-day winning streak on Wednesday as profit taking activities across the benchmark index heavyweights emerged.
The broader market also finished in red as market breadth turned negative with 874 decliners overwhelming 383 advancers.
Trading activity, however, improved with 3.65 billion shares compared with 3.61 billion shares exchanged hands in the previous session.
The FBM KLCI is expected to trade with a slight negative bias as investors digest the US Federal Reserve’s decision to maintain interest rates which may temper risk appetite in the near term.
While the policy hold was largely anticipated, cautious guidance and elevated global interest rates could prompt some profit-taking, keeping the benchmark range-bound with downside pressure likely to cap near-term gains.
That said, the pullback is viewed as healthy for it allows recent gains to be digested and providing a more sustainable base for the next leg of movement with downside likely to be supported by selective buying interest.
Technically, the key index has formed a bearish candlestick, suggesting for a potential consolidation.
For now, the next resistances are located at the 1,770 points and 1,775 points respectively. Meanwhile, immediate supports are at 1,745 points, followed by 1,735 points.
Malacca Securities Research
Given the FBM KLCI’s previously over-extended rally, we expect profit-taking to persist today with the strength of the ringgit further dampening the technology and export-oriented sectors.
Nevertheless, we continue to favour IGB REIT and IGB Commercial REIT following their stellar FY2025 results as both REITs offer prime assets, improving occupancy and rental rates in addition to attractive yields.
Meanwhile, water piping systems provider SF Group Bhd’s strong ACE Market debut has also spurred buying interest in water technology provider Insights Analytics Bhd.
Lastly, we like Powerwell Holdings Bhd’s latest RM68 mil data centre contract win, viewing a pullback towards the EMA20 as a potential entry opportunity.
Wednesday’s session saw the FBM KLCI experienced a pullback after a five-day winning streak but technical indicators are still showing positive signals as the MACD histogram expanded above zero while the RSI is still above the 70 level.
Resistance is anticipated around 1,771-1,776 while support is seen at 1,736-1,741. – Jan 29, 2026
