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 swift recovery on Monday with more than two-thirds of its constituents closing in the green after the manufacturing PMI reading for the month of November rose to 50.1, marking the highest level since May 2024 and also the first expansion in 18 months.
However, the rebound was predominantly driven by large-cap names while the FBM Small Caps continued to lag.
This divergence was reflected in the negative market breadth which saw 681 decliners outweighing 526 advancers.
The FBM KLCI may slip into a consolidative phase as investors could look to lock-in profits following the recent strong gains.
While selective buying in heavyweight names could offer intermittent support, the broader market sentiment is likely to turn cautious as market participants re-assess valuations and await for fresh catalysts.
External uncertainties surrounding the global interest rate direction, stretched valuations and the pullback on Wall Street overnight may further temper risk appetite.
Technically, the key index has formed a bullish candlestick to recover all its previous session’s losses.
However, a consolidation beckons as investors could seek to lock-in yesterday sharp gains with the immediate supports pegged at 1,610-1,600 points. On the upside, the immediate resistances are located at 1,628-1,638 points.
Malacca Securities Research
The lacklustre overnight performance on Wall Street may spill over to the local bourse but overall could be supported by the on-going window dressing activities.
Ultimately, we anticipate Bank Negara Malaysia (BNM) keeping the OPR (overnight policy rate) steady at 2.75% which should add to the case for a strengthening ringgit.
These factors would bode well, especially for domestic-driven sectors like banking, consumers, REITs and property.
We favour Alliance Bank Malaysia Bhd, CIMB Group Holdings Bhd, Life Water Bhd, 99 Speed Mart Retail Holdings Bhd, IGB REIT, Eco World Development Group Bhd and Sime Darby Property Bhd given their (i) strong window activities performances; (ii) higher-than-average net margins; (iii) healthy footfall counts; and (iv) active land-banking activities respectively.
The FBM KLCI index closed in positive territory. The technical indicators are showing a mixed signal; the MACD histogram is hovering in negative territory while the RSI is above 50.
Resistance is anticipated around 1,639-1,644 while support is located at 1,599-1,604. – Dec 2, 2025
