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 Friday ahead of the extended weekend break as the key index recorded a 3.6% month-on-month gain in January 2026.
The broader market, however, retreated as market breadth remained negative with 624 decliners towering 445 advancers.
Meanwhile, trading activity also eased to 2.73 billion shares compared with 3.06 billion shares in the previous session, suggesting a degree of investors sidelining ahead of the long weekend.
Looking ahead, the FBM KLCI is expected to track the broader global market sentiment as investors turn cautious amid on-going assessments of the US policy direction.
Market attention remains firmly on the nomination of Kevin Warsh as the next Federal Reserve Chairman by US President Donald Trump with participants evaluating potential impact on the Fed’s policy stance, US dollar movements and emerging market fund flows.
Domestically, the FBM KLCI’s resilience will hinge on how emerging macro data and regional developments interplay with the global earnings narrative.
For now, the local bourse will re-open with traders bracing for renewed volatility in tandem with regional markets yesterday.
The immediate resistances remain located at the 1,750 points and 1,770 points respectively. Meanwhile, immediate supports are at 1,720 points, followed by 1,700 psychological level.
Malacca Securities Research
In view of Wall Street’s overnight performance, we expect the local market to follow suit.
Telekom Malaysia Bhd’s securing of power supply for data centres (DC) in Johor along with several downstream DC project announcements have strengthens the case for “pick-and-shovel” plays within the DC value chain.
We favour Powerwell Holdings Bhd, particularly following the recent development of its acquisition in East Malaysia and its recent major project wins.
Meanwhile, UUE Holdings Bhd’s ESOS (employees share option scheme) losses could be viewed as non-recurring expenses which should also support a ‘buy-on-weakness’ opportunity, especiallygiven the company’s robust order book.
Friday’s session saw bargain-hunting activity emerged on the FBM KLCI. Technical indicators showed mixed signals; the MACD histogram remains in positive territory while the RSI is hovering below the 70 level.
Resistance is expected around 1,755-1,760 with support seen at 1,720-1,725. – Feb 3, 2026
