BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
While there were subtle signs of bargain hunting, the local bourse eventually reversed most of its intraday gains to close largely flattish on last Friday to cap off the turbulent week which recorded -2.4% week-on-week decline – the steepest weekly fall since June 2026.
Nevertheless, market breadth improved slightly as the liners mounted a recovery with traded volumes climbing to 4.3 billion shares.
Volatility is expected to remain a feature amid the elevated bond yields which are keeping investors on their toes.
Higher fixed-income yields could also temper risk appetite and reduce the relative attractiveness of equities, potentially limiting near-term upside for the benchmark. Investors will also be monitoring over the tentative release of the US ISM Services PMI data later tonight.
Against the current backdrop, market sentiment is likely to remain cautious with investors keeping a close eye on bond-yield movements, monetary policy signals and upcoming batch of corporate earnings from Wall Street.
The broader market may attempt to find stability amid the improvement in market breadth and trading liquidity. However, we continue to advocate for selective stock picking, favouring oversold companies with resilient earnings prospects.
As signs of bargain hunting were quickly fizzles, near-term recovery prospects appear to be dim. 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
Tracking Wall Street’s rebound, we expect the FBM KLCI to kick-start the week positively with attention shifting towards the Budget 2027 announcement this Friday.
We continue to favour Hartanah Kenyalang Bhd, backed by a record-high order book of RM851 mil (~6.8x FY2025 revenue) and potential infrastructure-related initiatives in East Malaysia under Budget 2027.
We also like ATE (automated test equipment) designer and manufacturer Aemulus Holdings Bhd, supported by its 3Q FY2026 earnings turnaround and record-high RM122 mil order book (~1.5x FY2025 revenue), driven by strong demand across the AI (artificial intelligence), data-centre and automotive industries.
Despite the local bourse marginal rebound on Friday, the technical indicators remained weak as the MACD histogram continued to hover in the negative territory while the RSI remained below 30.
Key resistance is pegged at 1,645-1,650 while support is seen at 1,610-1,615. – Oct 5, 2026
