BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI ended the week on a subdued note by reversing all its intraday gains to close lower on Friday ahead of the extended weekend festive break.
Market participation, however, rose as total traded volume edged up to 3.81 billion shares from 3.49 billion shares in the previous session.
Meanwhile, the broader market remained under pressure with the lower liners extending their decline amid signs of intensified profit taking as evidence by the negative market breadth that recorded 985 decliners vs 292 advancers.
For the week ahead, market sentiment is expected to turn cautious as investors await the release of China’s 3Q 2025 GDP (gross domestic product) data which will provide fresh insights into the health of the world’s second-largest economy.
Any signs of moderation in China’s growth momentum could weigh on regional equities, particularly cyclical and export-oriented sectors.
Conversely, an upside surprise may help lift sentiment across Asian markets, offering near-term support to the FBM KLCI.
Overall, the trading tone is likely to remain measured as participants assess external cues and upcoming U.S. corporate earnings releases.
Technically, the FBM KLCI formed a bearish candle but remains within the consolidation band. Near-term resistances are located at 1,622 points and 1,635 points.
On the other hand, the supports remain pegged at 1,600 points and 1,580 points respectively.
Malacca Securities Research
Tracking the positive overnight performance in the US, we expect the FBM KLCI to kickstart the week on a stronger note.
Meanwhile, we noticed some buying interest in automotive stocks such as DRB-Hicom Bhd and MBM Resources Bhd, potentially benefitting from the car scrapping policy that offers up to RM4,000 in matching grants for replacing vehicles over 20 years old with a new national car.
With anticipated rate cuts moving forward, we remain optimistic of the REIT and property sectors.
Lastly, traders may monitor Capital A Bhd and AirAsia X Bhd for trading opportunities, underpinned by the former’s potential PN17 (Practice Note 17) upliftment by December.
Friday session saw the local bourse traded lower with technical indicators suggesting weakening signals; the MACD histogram is hovering in the negative territory while the RSI is hovering below 50.
Resistance is anticipated around 1,622-1,627 while support is located at 1,587-1,592. – Oct 21, 2025
