BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
he FBM KLCI rebounded to close a whisker away from the 1,600 psychological level on bargain hunting activities amid the improved Wall Street performance.
Trading volume rose to 2.9 billion shares though market breadth remained negative, implying persistent weakness across the broader market.
Looking ahead, the FBM KLCI is expected to attempt to build on yesterday’s recovery and retest the 1,600 psychological level with bargain hunting and improved external sentiment potentially providing near-term recovery prospects.
The broader market recovery prospects remain scant as buying interest remains selective at this juncture. Meanwhile, the higher CPO (crude palm oil) prices could trigger trading interest within the plantation sector today.
With the local bourse attempting to finds stability, a recovery above the 1,600 level could lift the key index towards the next resistances at 1,612-1,620 points. Meanwhile the immediate support is pegged at 1,590 points, followed by 1,580 points.
We see the ability to reclaim and sustain above this key level remains crucial to restoring market confidence under the prevailing persistently weak market breadth and the foreign funds selling position.
With the local bourse attempting to finds stability, a recovery above the 1,600 level could lift the key index towards the next resistances at 1,612-1,620 points. Meanwhile the immediate support is pegged at 1,590 points, followed by 1,580 points.
Malacca Securities Research
The FBM KLCI may remain mixed amid elevated oil prices, global AI (artificial intelligence)-sector volatility and persistent foreign selling.
Stock-wise, we favour 99 Speed Mart Retail Holdings Bhd which may benefit from Budget 2027’s increased STR-SARA allocation of RM16 bil from RM15 bil in 2026.
Strong utilisation is evident, with nearly RM11 bil disbursed as of September and monthly SARA utilisation reaching 99.7%.
Meanwhile, a proposed CPO export-tax waiver could boost export competitiveness for plantation players such as Ta Ann Holdings Bhd and Sarawak Plantation Bhd although implementation remains uncertain.
Separately, Sarawak’s 15GW power-generation target by 2035 with at least 60% from renewables, could benefit infrastructure players such as MN Holdings Bhd through potential grid and substation projects.
The FBM KLCI remained capped below key SMAs (simple moving average) after staging a mild rebound. However, momentum indicators signal sustained recovery as the MACD histogram remains positive and the RSI holding near oversold territory.
Overhead resistance sits at 1,615-1,630 while near-term support is established at 1,570-1,585. – Oct 21, 2026
