BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI rebounded on Monday, mainly lifted by the buying support among selective index heavyweights in the final minutes of the trading session.
The broader market, however, ended mixed, reflecting a still-cautious trading tone. Nevertheless, market participation improved to 2 billion shares despite the lack of clear directional conviction.
The FBM KLCI is expected to trade on a cautious and range-bound footing in the near term as investors remain selective amid lingering profit-taking activities.
Market sentiment is also likely to be guided by external developments with investors closely monitoring the upcoming release of the US Chicago PMI data for further clues on the strength of the US’ manufacturing sector and broader economic momentum.
Still, any downside is expected to be well cushioned amid the abated volatility of late. The FBM KLCI has formed a hammer candlestick, suggesting for a potential extension of the recovery following the breakthrough above the 1,680-resistance level.
For now, the next resistance is located at 1,690 points, followed by the 1,700 psychological level. On the downside, the near-term supports are pegged at the 1,665-1,658 levels.
Malacca Securities Research
As the FBM KLCI approaches the end of 2025, we believe banking stocks will continue to lead the key index higher.
We favour Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Bank Bhd, underpinned by attractive dividend yields of >5%.
Meanwhile, we expect selected consumer and tourism-related stocks to benefit from a stronger ringgit environment and Visit Malaysia 2026 (VMY 2026), including Oriental Kopi Holdings Bhd, Aquawalk Group Bhd and Life Water Bhd.
Lastly, following Insights Analytics Bhd’s breakout yesterday, investors and traders may continue to monitor the stock for trading and investment opportunities, supported by (i) federal and state government budget allocations; (ii) the potential Sarawak state election in 2026; and (iii) IAB’s consistently strong double-digit PAT (profit after tax) margins.
The FBM KLCI index extended its gains but technical indicators are showing mixed signals; the MACD histogram is in positive territory but the RSI suggests that the key index is overbought.
Resistance is anticipated around 1,695-1,700 while support is located at 1,660-1,665. – Dec 30, 2025
