BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its winning streak to a third consecutive session on Monday, lifted by optimism over the favourable trade agreement with the US where more than 1,700 key export items will be exempted from reciprocal tariffs.
Market participation also improved to 3.44 billion shares, up from 2.98 billion shares in the previous session.
However, the broader market closed mixed, resulting in overall market breadth turning fairly even with 543 advancers vs 544 decliners.
For the near term, the local bourse may continue to trade with an upward bias, supported by improving sentiments following the favourable trade developments and sustained foreign buying interest.
However, after the recent winning streak, intermittent profit-taking could emerge as investors look to lock-in gains.
Still, the underlying tone remains constructive with the key index likely to find support from selective buying in blue-chip and export-oriented counters.
Technically, the FBM KLCI gapped up to close at its highest level in more than two weeks. A breakthrough above the upper band of the short-term consolidation pattern of 1,622 points may power the key index towards the next resistance at 1,638 points.
In contrast, further extension of the consolidation will see the 1,600 psychological level serving as the immediate support, followed by 1,580 points.
Malacca Securities Research
Tracking the positive regional performance and Trump’s recent visit to Malaysia, we believe sentiment will continue to remain positive for the local bourse.
Meanwhile, the exemption of palm oil, rubber and cocoa from 19% US tariffs could boost and sustain buying interest in the plantation and commodities sectors.
Finally, we are optimistic about the news that AWC Bhd has secured a five-year facilities management contract worth RM82.5 mil from the Public Works Department (JKR) for buildings in Putrajaya.
This is expected to enhance AWC’s earnings visibility and reinforce its recurring revenue base.
Technically, AWC has experienced a breakout above the MA200 and is expected to continue its higher-low and higher-high pattern.
Although the FBM KLCI index has continued with its upward trend, the technical indicators are giving a mixed signal; the MACD histogram is hovering in the negative territory while the RSI is hovering above 50.
Resistance is anticipated around 1,633-1,638 while support is located at 1,598-1,603. – Oct 28, 2025
