BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI staged a mild pullback on Monday after trading largely directionless throughout the session as the key index underperformed the mostly positive regional peers.
Trading activity moderated to 3.12 billion shares, down from 3.69 billion shares in the previous session. Market breadth also turned negative with 630 decliners outpacing 441 advancers, indicating broad-based selling pressure across the market.
Looking ahead, the FBM KLCI is expected to maintain a cautious bias in the near term as investors digest a slew of upcoming corporate earnings releases for fresh earnings catalysts and guidance.
Sentiment may also remain subdued amid rising inflationary concerns after Malaysia’s producer prices climbed 5.4% year-on-year in April 2026, marking the sharpest increase since August 2022 as producer-level cost pressures intensified due to mounting supply chain disruptions stemming from the on-going Middle East war.
Technically, the key index traded mostly in the red yesterday before edging marginally lower. With technical indicators pointing to a bearish tone, near term supports are located at the 1,700 psychological level and the 1,690 level respectively. Meanw
Malacca Securities Research
As the Middle East peace deal progresses, we believe sentiment will continue to bode well for regional markets, including the FBM KLCI.
Meanwhile, we view the sharp sell-downs in REITs as value-picking opportunities for dividend investors, favouring Pavilion REIT, Sunway REIT and IGB Commercial REIT due to their strong fundamentals and attractive dividend yields.
Lastly, we continue to favour VSTECS Bhd and AGMO Holdings Bhd; the former is benefitting from on-going data centre boom in the country which requires more of VSTECS’ enterprise servers and infrastructure while the latter might see increased institutional interest following its transfer of listing from the ACE to the Main Market in April.
The FBM KLCI retreated further with its technical indicators are still showing negative momentum at this current juncture as the MACD histogram is still trading in the negative territory while the RSI has traded below 50.
Resistance is seen around 1,723-1,728 with support at 1,688-1,693. – May 26, 2026
