BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI came under renewed selling pressure on Tuesday, slipping below the 1,700 psychological threshold as escalating geopolitical tensions between the US and Europe weighed on risk sentiment.
The broader market also closed on a downbeat note, reflected by weak market breadth with 786 decliners overwhelming 296 advancers.
Meanwhile, trading activity moderated to 2.86 billion shares from 3.06 billion shares in the previous session in line with the more subdued market environment.
Looking ahead, the FBM KLCI is expected to trade with a slightly negative bias as heightened external uncertainties and lingering geopolitical risks continue to dampen investors’ risk appetite.
Profit-taking may persist following recent volatility, particularly with the index having slipped below key 1,700 psychological level which could limit near-term buying interest.
Overall sentiment is likely to remain cautious, keeping the index range-bound with downside risks prevailing in the absence of stronger catalysts.
Technically, the FBM KLCI has formed another bearish candlestick and consequently slipped to close marginally below the 1,700 psychological level.
Following the pullback on Wall Street overnight, the local bourse downside remains prevalent with the 1,685 points acting as the immediate support, followed by the 1,665 points. Meanwhile, the resistances are located at 1,712 points and 1,721 points.
Malacca Securities Research
In view of Wall Street’s lacklustre overnight performance, we expect the local bourse to follow suit.
However, we remain positive that a “pick-and-shovel” play is emerging within the data centre (DC) value chains.
Substations along with underground and overhead utilities are in the spotlight as project pipelines remain healthy – a fact reflected by MN Holdings Bhd’ recent project wins.
Also, Mitrajaya Holdings Bhd is gaining traction through exposure to this sector, evidenced by further project additions from NEXTD Ltd.
Regarding pure construction plays, we observe that Inta Bina Group Bhd’s trading volume is consistently exceeding its 20-day average.
Tuesday’s session saw the local bourse close on a weaker note. However, the technical indicators remain in positive territory with the MACD histogram hovering in the positive zone while the RSI is above the 50 level.
Resistance is anticipated around 1,714-1,719 while support is seen at 1,674-1,684. – Jan 21, 2026
