BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resumed its pullback mode on Wednesday in line with the weakness across regional markets as sentiment was unsettled by on-going geopolitical developments in the Middle East.
Trading activity, however, gained ground with total volume rising to 3.51 billion shares from 3.32 billion shares in the previous session as traders retreated to the sidelines.
Market breadth remained negative with 945 decliners trouncing 257 advancers, underscoring widespread weakness across the broader market.
Going forward, the FBM KLCI is likely to stay fragile as investors closely monitor escalating geopolitical tensions in the Middle East which could continue to weigh on risk appetite and prompt defensive positioning.
The lingering external headwinds is likely to cap a meaningful recovery, if any over the interim.
Meanwhile, Bank Negara Malaysia’s (BNM) upcoming policy meeting later today is widely expected to see the overnight policy rate (OPR) maintained amid the stable inflation and sustained domestic economic growth in recent quarters.
Technically, the FBM KLCI has formed a bearish candlestick to slip below the 1,700 psychological level.
Given that the aforementioned level is unable to hold, the immediate support has now shifted to 1,685 points, followed by 1,675 points. The immediate resistance is at 1,712 points and thereafter at 1,720 points.
Malacca Securities Research
We believe buying interest will spill over with banking heavyweights continuing to be the focal point.
The favourable US-Malaysia rate differential as well as a stronger ringgit should benefit banking assets.
Meanwhile, we expect crude oil prices to stabilise above US$80/barrel in the near term which may benefit upstream O&G (oil & gas) players such as Hibiscus Petroleum Bhd.
We also anticipate that buying interest in Velesto Energy Bhd will be sustained on the heels of several project wins.
While clients are shifting towards procuring solar materials and ATAP (Solar Accelerated Transition Action Programme) payback periods appear to be longer, we believe solar contractors now offer value with LSS (Large Scale Solar) packages remaining a key focus.
The FBM KLCI closed on a weaker footing. Moreover, technical indicators suggest momentum remains weak with the MACD histogram still in the negative region while the RSI is approaching 30.
Resistance is seen around 1,713-1,718 with support at 1,678-1,683. – March 5, 2026
