BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
There was no reprieve for the FBM KLCI which recorded its seventh straight session of decline after erasing all its intraday gains on Thursday.
Trading activity moderated to 3.49 billion shares from 4.15 billion shares in the previous session. Market breadth stayed negative with 656 decliners outpacing 508 advancers as lower liners continued to stay under pressure amid the prevailing cautious sentiment.
Looking ahead, the FBM KLCI is expected to attempt a recovery amid renewed optimism over a potential ceasefire deal in West Asia.
With the persistent selling pressure from foreign funds – compounded by the hawkish undertone from the recently released FOMC (Federal Open Market Committee) minutes and lingering geopolitical uncertainties – a meaningful recovery may prove elusive in the near term without fresh and compelling positive catalysts.
Bargain hunting, if any, is likely to remain selective and tentative, concentrated in fundamentally sound, dividend-yielding counters.
Technically, the key index extended its pullback and dipped below the 1,712 support level. The next support has now moved to the 1,700 psychological level, followed by the 1,690 level.
Meanwhile, the immediate resistance is envisaged at 1,721 points, followed by 1,737 points.
Malacca Securities Research
Tracking the positive performance on Wall Street yesterday, we anticipate that the FBM KLCI will rebound today after a losing streak of more than a week.
Meanwhile, we like the rebound above the EMA20 shown by Powerwell Holdings Bhd, underpinned by its massive contract wins for data centres in Selangor, infrastructure buildouts such as the Johor Bahru-Singapore Rapid Transit System (RTS) Link and regional manufacturing expansions.
Lastly, we remain bullish on the technology sector, favouring Mi Technovation Bhd, UWC Bhd, Frontken Corporation Bhd and THMY Holdings Bhd as sentiment should continue to bode well for the sector following Nvidia’s recent earnings outperformance and the ARM partnership announcement.
The FBM KLCI continued to retrace further with technical indicators showing weakening signals as the MACD histogram has expanded toward the negative territory while the RSI hss traded below 50.
Resistance is seen around 1,723-1,728 with support at 1,688-1,693. – May 22, 2026
