BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
Once again, the FBM KLCI was nudged to close in the positive territory on Tuesday amid subtle signs of year-end window dressing.
The broader market, however, finished slightly weaker on a tepid trading environment.
Market participation also eased with only 1.9 billion shares exchanged hands as many investors stayed on the sidelines ahead of the year-end break, thus leaving market breadth on the negative side.
As we approach the final trading day of the year, the FBM KLCI is expected to remain subdued and trade within a narrow range as market participation continues to thin amid the year-end holidays.
With many investors already on the sidelines and amid limited fresh catalysts, near-term movements are likely to be driven by technical factors with the absence of strong buying conviction.
Overall sentiment is expected to remain lacklustre with the key index likely to trade in a narrow range.
The FBM KLCI has formed another bullish candlestick to defend the recent resistance breakout of 1,680 points.
With the aforementioned level continuing to hold, further upsides could be present. For now, the 1,690 level will serve as the immediate resistance, followed by the 1,700 psychological level.
On the downside, the near-term supports are pegged at the 1,665-1,658 levels.
Malacca Securities Research
As the market enters the final trading day of the year, we believe the FBM KLCI will extend its momentum to end 2025 at a higher level, supported by buying interest seen within the banking heavyweights.
We favour Malayan Banking Bhd, CIMB Group Holdings Bhd and RHB Bank Bhd due to their attractive dividend yields of over 5%.
Meanwhile, we believe traders can monitor Johor Plantations Group Bhd and Innoprise Plantations Bhd for trading opportunities as the FCPO (crude palm oil futures) price stabilises above RM4,000.
Lastly, we continue to favour the consumer and building material segments; Oriental Kopi Holdings Bhd, Aquawalk Group Bhd and Life Water Bhd may sustain their upward momentum ahead of Visit Malaysia 2026 (VMY 2026) and a stronger ringgit environment.
The FBM KLCI index extended its gains but technical indicators are showing mixed signals; the MACD histogram is in positive territory but the RSI suggests that the key index is overbought.
Resistance is anticipated around 1,699-1,704 while support is located at 1,664-1,669. – Dec 31, 2025
