BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI retreated for the third straight session to close below the 1,600 psychological level with more than half of the key index components closed in red.
Trading volume dwindled to 2.5 billion shares while market breadth turned negative, highlighting a broad-based selling pressure.
Going forward, the FBM KLCI is likely to maintain a cautious bias tone in the near term as fragile market sentiment and heightened external uncertainties continue to weigh on risk appetite.
Meanwhile, the focus will gradually shift towards the upcoming barrage of corporate earnings releases from Wall Street.
The broader market is expected to remain cautious amid persistent selling pressure, lingering external uncertainties and subdued investor sentiment. Still, we reckon there is pocket of opportunities to bargain hunt on selected beaten down stocks.
The breach of the 1,600 psychological support level may invite further selling pressure with next support pegged at 1,590, followed by 1,580 while resistance is located at the 1,600-1,610 range.
Nevertheless, selective bargain hunting in fundamentally sound blue chips may help cushion further downside although a sustained recovery would likely require improved foreign fund flows and greater stability in global markets.
Malacca Securities Research
The local bourse may trade mixed amid persistent foreign selling and global uncertainty that could cap the upside on the broader market.
However, improved technology sentiment and robust September export growth are likely to offer some support; Malaysia’s exports surged 54.5% year-on-year (yoy) to RM215.1 bil in September, supported by stronger electrical and electronics shipments.
Stock-specific catalysts include Jati Tinggi Group Bhd, following its RM30.1 mil data-centre infrastructure contract in Kulai, Johor.
Meanwhile, GDB Holdings Bhd may also warrant attention after securing a RM119 mil subcontract for Sarawak’s Phase 3 National Flood Forecasting and Warning Programme with completion scheduled for November 2029.
Broad-based decline kept the FBM KLCI constrained beneath key moving averages. However, oversold conditions could prompt selective bargain hunting, supported by an RSI hovering near 30 and an improving MACD histogram.
Key resistance lies within 1,610-1,625 while near-term support is expected around 1,565-1,580. – Oct 20, 2026
