BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI staged a recovery on Monday to re-claim the 1,600 psychological level after hovering mostly in the positive territory throughout the trading session.
Meanwhile, the broader market also ticked higher despite registering softer trading activities with traded volumes easing to 2.79 billion shares from 3.59 billion shares in the prior session as investors turned selective while awaiting fresh catalysts.
As a result, market breadth turned negative amid the continuing bouts of mild profit taking.
Looking ahead, the local bourse may continue to consolidate while attempting to defend the 1,600 psychological level with near-term sentiment likely swayed by external leads and sector-specific catalysts.
Also, foreign funds movement will continue to play a vital role in shaping the market direction.
On the macro front, investors will be watching closely Malaysia’s upcoming inflation data which is expected to remain contained, hence providing some reassurance on the domestic monetary policy outlook.
Technically, the key index has formed a bullish candle to close slightly above the 1,600 psychological level.
Tracking the gains on Wall Street overnight, the key index may attempt to build onto yesterday’s gains towards the immediate resistance located at 1,611 points, followed by 1,620 points.
On the other hand, near-term support is pegged at 1,585 points and thereafter a firmer base at 1,580 points.
Malacca Securities Research
We anticipate the local market will trade on a stronger footing as solid sentiment from Wall Street may spill into the local technology sector at least in the near term.
Meanwhile, we favour ITMAX System Bhd given its sticky solutions and services as well as the contract wins of ~RM51 mil stretching over the next 15 years.
On the data centre (DC) front, we like CBH Engineering Holding Bhd due to its (i) undemanding valuations; and (ii) high exposure to DC plays.
Furthermore, we have issued a non-rated report on Cheeding Holdings Bhd with a fair value of 72 sen (IPO price: 36 sen), supported by its (i) unique niche in overhead infrastructure utilities; and (ii) robust operational efficiency as reflected in its net margins which stand well above the peers’ average.
The FBM KLCI traded higher after a slight pullback towards 1,598. Moreover, technical indicators are showing positive signals with the MACD histogram expanding above zero and the RSI holding above 50.
Resistance is anticipated around 1,618-1,633 while support is located at 1,583-1,588. – Sept 23, 2025
