BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI recorded its fourth consecutive day of gains on Monday, supported by improving risk appetite amid optimism over the US -Iran peace agreement that could pave the way for the de-escalation of tensions in the Middle East.
Trading activity strengthened significantly with total market volume surging to 5.03 billion shares from 2.91 billion shares in the previous session.
Market breadth turned decisively positive as 798 gainers outpaced 478 losers, reflecting broad-based buying interest.
Looking ahead, the FBM KLCI could march higher, supported by improving market sentiment as of late, stronger participation and the recent breakout above near-term resistance levels.
The easing of geopolitical concerns over at the Middle East coupled with expectations of sustained domestic economic resilience could provide further upside momentum.
Economic-wise, investors will be keeping a close tab on China’s retail sales and industrial production data as well as the Bank of Japan’s (BOJ) interest rate decision later today.
Technically, the key index has formed another gap up to breakout above the 1,687 resistance and looks to re-test the next resistance at 1,693 points, followed by the 1,700 psychological level.
On the contrary, near-term support is pegged at 1,680 points and thereafter at 1,672 points.
Malacca Securities Research
Tracking the strong overnight rally on Wall Street, we believe that the FBM KLCI will extend its recovery today with buying interest rotating into the tech sector.
With the drop in oil prices, market sentiment should bode well for airline and consumer-related stocks due to an expected cost-relief windfall with Spritzer Bhd and Life Water Bhd both already staging decisive breakouts.
Meanwhile, we expect the market to continue favouring the data centre theme, thus benefitting stocks such as EI Power Bhd, Ranhill Utilities Bhd and AMS Advanced Material Bhd.
Lastly, tracking the strong rally on the Nasdaq, we like Inari Amertron Bhd and Frontken Corp Bhd as they act as tech proxies for the on-going global semiconductor and AI (artificial intelligence) boom.
While the FBM KLCI has rebounded, its technical indicators are suggesting mixed signals at this current juncture with the MACD histogram started to tilt towards the positive region while the RSI is still hovering below 50.
Resistance is seen around 1,706-1,711 with support at 1,671-1,676. – June 16, 2026
