BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resumed trading on an upbeat manner to finish higher on Tuesday, cheering onto the easing trade tensions between the US and China.
Market participation, however, fell as the total trading volume took a small step back to 3.69 billion shares from 3.81 billion shares recorded last Friday.
The broader market also rebounded with only the REIT sector underperforming as market breadth turned in favour of advancers with 779 gainers vs 369 decliners.
Building onto yesterday’s gains, the FBM KLCI may extend its upward momentum as improving sentiments and sustained buying interest in blue chip counters continue to lend support.
Renewed optimism over potential policy catalysts and more stable macro fundamentals could also attract further institutional interest into selected heavyweight names.
Meanwhile, investors will be keeping a close tab on Malaysia’s inflation data slated for release later today.
Technically, the FBM KLCI gapped up and formed a bullish candle but remains within the consolidation band.
A recovery beyond the immediate resistance of 1,622 points may power the key index towards the next resistance located at 1,635 points. On the flipside, the supports remain pegged at 1,600 points and 1,580 points respectively.
Malacca Securities Research
In view of a mixed Wall Street performance coupled with Malaysia’s upcoming ASEAN Summit as well as positive developments from the Budget 2026, we expect the FBM KLCI index to trade on a firmer note.
On stock picks, we believe DRB-Hicom Bhd, MBM Resources Bhd and Tan Chong Motor Holdings Bhd are potential proxies for the recent car scrapping policy (matching grants for replacing vehicles over 20 years old with a new national car).
Moreover, growing power demand from data centre investments, compounded by the on-going National Energy Transition Roadmap (NETR) masterplan and Tenaga Nasional Bhd’s expanding capex could bode well for utility players such as Gas Malaysia Bhd, MN Holdings Bhd and KJTS Group Bhd.
The FBM KLCI index began the week on a stronger footing while technical indicators pointed towards mixed momentum at the current juncture; the MACD histogram is hovering in negative territory while the RSI has hooked above 50.
Resistance is anticipated around 1,631-1,636 while support is located at 1,596-1,601. – Oct 22, 2025
