BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its decline on Tuesday to close below the 1,700 psychological level with more than half of the key index components ending in the red.
Trading activity, however, inched higher to 3.24 billion shares from 3.12 billion shares in the previous session. Market breadth remained negative with 695 decliners outnumbering 413 advancers, implying that the broad-based selling pressure across the market remains unabated.
Looking ahead, FBM KLCI could maintain a cautious bias tone amid the sustained foreign fund outflow trend which has now stretched into the eleventh consecutive trading session.
Investor sentiment may continue to be weighed down by uncertainties surrounding the global interest rate outlook, evolving geopolitical developments and concerns over the pace of global economic growth.
In addition, the strengthening greenback and elevated treasury yields could continue to drive fund rotation away from emerging markets, including Malaysia.
Technically, the key index gapped down to extend its pullback mode. With the 1,700 psychological level giving way, the next supports are pegged at 1,690 points and 1,683 points respectively.
Meanwhile, the resistances are envisaged at the 1,712 points and 1,721 points.
Malacca Securities Research
Tracking Wall Street’s positive performance, we think the FBM KLCI may rebound today.
Meanwhile, we remain optimistic about solar counters, particularly Solarvest Holdings Bhd and Pekat Group Bhd as technically their share prices have recovered from their recent dips.
Moreover, they are fundamentally supported by strong earnings, the LSS5and LSS5+ construction boom and on-going government initiatives such as the NETR (National Energy Transition Roadmap) and CGPP (Corporate Green Power Programme).
Lastly, we also favour both AMS Advanced Material Bhd and 3REN Bhd with the former benefitting from the on-going semiconductor boom while the latter benefits from Intel’s multi-billion-dollar advanced packaging hub expansion in Malaysia.
The FBM KLCI has retreated further with its technical indicators still showing negative momentum at this current juncture with the MACD histogram still trading in the negative territory while the RSI has traded below 50.
Resistance is seen around 1,714-1,719 with support at 1,679-1,684. – May 28, 2026
