BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI ended on a flattish note after coming off from its intraday peak, suggesting limited buying conviction.
Market breadth remained negative despite an improvement in trading activity with total volume rising to 4.8 billion shares.
Tracking the positive developments on Wall Street overnight along with the pullback on oil prices, the local bourse is expected to extend its minor gains.
Attention is likely to remain on global bond yields, crude oil prices and upcoming economic data for further direction.
The broader market is likely to remain cautious despite the improvement in trading activity, as weak market breadth suggests that buying interest remains selective.
The technology sector could build onto yesterday’s strong performance, tracking the improvement on Nasdaq overnight.
While further recovery could be on the cards, quick profit taking is expected to limit further gains with the immediate resistances remain located at 1,657-1,663 points. The supports are pegged at 1,625 points, followed by 1,620 points.
Malacca Securities Research
Locally, we expect investors to remain selective ahead of the Budget 2027 announcement with attention centred on potential beneficiary sectors.
M&E (mechanical and electrical engineering) players could continue to see buying interest, supported by the government’s emphasis on AI infrastructure and Tenaga Nasional Bhd’s 500kV National Grid Backbone project favouring companies such as MN Holdings Bhd, Southern Cable Group Bhd and Powerwell Holdings Bhd.
Efforts to reduce non-revenue water could also remain in focus, potentially benefiting companies such as ISF Group Bhd and Ranhill Utilities Bhd.
Lastly, 99 Speed Mart Retail Holdings Bhd could see renewed buying interest on expectations of higher consumer assistance allocations under SARA and STR (Sumbangan Tunai Rahmah).
Despite the rebound yesterday, the FBM KLCI is still trading below the MA (moving average) line with technical indicators showing weak signals as the MACD histogram continued to hover in the negative territory while the RSI is oversold.
Key resistance is pegged at 1,646-1,651 while support is seen at 1,611-1,616. – Oct 6, 2026
