BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI began the week on a subdued note with the key index largely directionless for much of the session before closing with measured gains on Monday.
Overall trading activities moderated with volumes easing to 3.69 billion shares from 4.04 billion shares previously as market breadth turned negative with decliners outpacing advancers by a ratio of 7-to-4.
Unsurprisingly, the broader market stocks were mostly lower for the day.
Given the subdued start and weak market breadth, the market is likely to remain in a consolidation phase as investors await fresh catalysts.
Any further pullback would be considered healthy, allowing for the recent gains to be digested and setting the stage for renewed buying interest once sentiment improves.
In the meantime, investors are expected to adopt a cautious stance ahead of the tabling of Budget 2026 this Friday (Oct 10) which could provide fresh impetuses for the market moving forward.
From a technical perspective, the FBM KLCI may experience a mild pullback following several sessions of rally last week.
With the 1,600 psychological level expected to hold firm, the immediate support levels are located at 1,620 and 1,611 points respectively while the near-term resistance is seen at 1,660 points, followed by 1,675 points.
Malacca Securities Research
Given the AI (artificial intelligence) and technology optimism in the US, we expect the local bourse to open on a firmer note with positive buying sentiment spilling over into technology stocks and EMS (electronics manufacturing services) players.
The latter had noticed strong buying support yesterday in stocks like EG Industries Bhd and P.I.E. Industrial Bhd.
Ahead of the Budget 2026, we expect market participants to focus on the construction, building material and utilities sectors.
We favour KJTS Group Bhd under the utilities segment given its (i) position as the sole listed energy efficiency player in Malaysia; (ii) solid recurring revenue mix of 75%; and (iii) RM1.5 bil capex plan which would allow the group to undertake higher complexity and higher margin jobs.
The FBM KLCI continued to form new highs with technical indicators showing positive signals as the MACD histogram traded above its positive territory while the RSI has broken above the 70 level.
Resistance is anticipated around 1,653-1,658 while support is located at 1,618-1,623. – Oct 7, 2025
