BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI managed to chalk up marginal gains on Friday as the key index scored a seven-day winning run, mainly driven by the eleventh-hour buying across selected index heavyweights as the periodic FTSE constituent re-balancing took place.
Trading activity, however, fell to 3.45 billion shares from 4.50 billion shares in the previous session. Market breadth remained turned negative with 525 decliners nudging 491 advancers, reflecting some selling pressure across the broader market.
Despite the recent streak of gains, the FBM KLCI outlook is expected to turn choppy in the near term as a more hawkish pivot from the US Federal Reserve reinforces expectations for a higher for longer interest rate environment.
This has led to renewed pressure on emerging market assets with Malaysia particularly vulnerable to further foreign fund outflows given its high sensitivity to global liquidity conditions.
Compounding this, the ringgit has depreciated against the greenback to its lowest level since November 2025, underpinning both external US dollar strength and softer regional risk sentiment.
Technically, the key index has formed a gap down but managed to recover all its intraday losses.
However, renewed weakness could be on the cards as profit taking may send the local bourse towards the near-term support envisaged at the 1,700 psychological level, followed by 1,686 points. Meanwhile, the immediate resistances remain pegged at 1,718-1,732 points.
Malacca Securities Research
We believe the FBM KLCI will kickstart the week on a cautious following closure of the Straits of Hormuz.
Meanwhile, with the rebound in CPO (crude palm oil) price, we continue to favour plantation stocks like Sarawak Oil Palms Bhd, United Plantations Bhd and Johor Plantations Group Bhd.
Riding on the photonics wave in the data centre boom, traders could also position into Northeast Group Bhd which is poised for a breakout with the group announcing stellar 2Q FY2026 results.
Lastly, we also like the breakout shown in Life Water Bhd, underpinned by its increased margin due to higher ASP (average selling price) and lower raw material cost (resin) as well as higher production capacity following commencement of its Sandakan Sibuga Plant 1 in June 2025.
As the FBM KLCI rebounded, its technical indicators are also suggesting improving signals at this current juncture with the MACD histogram having tilted toward the positive region while the RSI is still expanding above 50.
Resistance is seen around 1,727-1,732 with support at 1,692-1,697. – June 22, 2026
