BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI experienced a setback as it lingered in the negative territory for the entire trading session on Tuesday.
Overall trading activities also took another step back with volumes slipping to 3.48 billion shares from 3.69 billion shares in the previous session.
Market breadth remained negative as evidenced by the weakness across the broader market with an advancers-to-decliners ratio of 1-to-2 stocks.
The market’s weakness was in tandem with similar conditions among its regional peers due to the lack of fresh catalyst.
The domestic market’s near-term outlook is expected to remain tilted towards consolidation, following persistent weakness in the benchmark index and subdued overall participation.
In the absence of strong catalysts, along with growing concerns over a prolonged US government shutdown, market sentiments could remain cautious.
Economy-wise, investors will be keeping a close onto the release of Federal Open Market Committee (FOMC) minutes meeting later tonight which will offer clues over the anticipation of further monetary easing.
Technically, the FBM KLCI has formed a bearish candle after the key index retreated from the overbought region, signalling a potential pause in the recent uptrend.
With the trading momentum turning less favourable, further near-term pullback could be on the cards with the immediate support levels seen at 1,620 and 1,611 points respectively. Meanwhile, the near-term resistances are located at 1,660 points and 1,675 points respectively.
Malacca Securities Research
In tandem with the negative Wall Street sentiment, we expect the FBM KLCI to open on a weaker note following the sell-off in the technology sector.
However, we believe traders may focus on EMS (electronics manufacturing services) players, particularly Aurelius Technologies Bhd, given that (i) we believe it is a proxy for the government’s push towards Industry 4.0, and (ii) its sizeable order book of ~RM436.4 mil which provides the group with at least 1.0-1.5x earnings visibility.
With Binastra Corp Bhd’s recent project wins which include infrastructure works for a 65MWp solar PV system and a 200MWh battery storage system, we opine that buying interest in the counter will continue to pick up.
The FBM KLCI closed lower on Tuesday. However, technical indicators are showing positive signals as the MACD histogram has trended within positive territory while the RSI hovered around the 70 level.
Resistance is anticipated around 1,645-1,650 while support is located at 1,610-1,615. – Oct 8, 2025
