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 gains as investors digested measures announced under Budget 2027 last Friday.
However, market breadth turned negative while total trading volume was broadly unchanged at 3.4 billion shares, suggesting profit-taking among lower liners after their recent gains.
Looking ahead, we expect the FBM KLCI to trade with a cautious bias as persistent external headwinds continue to weigh on market sentiment.
On-going geopolitical uncertainties, volatility in global bond yields and fluctuations in crude oil prices may keep investors defensive while bargain hunting could provide intermittent support.
Overall, we anticipate choppy trading, with investors likely to remain selective pending clearer external cues and further assessment of Budget 2027 measures.
Sentiment is expected to remain cautious on the broader market amid persistent external uncertainties and on-going profit-taking, particularly among lower liners following their recent gains.
Nevertheless, selective opportunities may emerge in fundamentally sound stocks with attractive valuations and clear earnings visibility.
A potential consolidation beckons for the FBM KLCI as investors digest recent gains with the immediate resistances located at 1,630-1,640 points. Meanwhile, the immediate support is pegged at the 1,600 psychological, followed by 1,580 points.
Malacca Securities Research
Given on-going geopolitical uncertainty and rebounding oil prices, we expect cautious sentiment to spill over into the local bourse with investors remaining selective towards post-Budget 2027 beneficiaries.
Meanwhile, we are positive on IJM Corp Bhd securing a RM1.23 bil contract to build a high-tech microchip manufacturing facility for AT&S in Kulim Hi-Tech Park, thus lifting the group’s outstanding order book to RM10.6 bil which is equivalent to approximately 1.5x FY2026 revenue.
Lastly, we also favour MN Holdings Bhd following its RM293.9 mil contract win to develop data centre power facilities while Tenaga Nasional Bhd’s (TNB) RM15 bil grid investment should continue to benefit companies involved in transmission and distribution infrastructure.
Despite the rebound yesterday, the FBM KLCI stayed below the MA lines, with technical indicators remain negative as the MACD continued to trade in the negative territory while the RSI hovering at the oversold territory.
Key resistance lies at 1,633-1,638 while near-term support is expected around 1,598-1,603. – Oct 13, 2026
