BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI snapped a seven-day winning streak on Monday as profit taking activities took charge among selected index heavyweights.
Trading activity eased to 3.29 billion shares from 3.45 billion shares in the previous session. Market breadth stayed negative with 560 decliners outpacing 481 advancers, indicating that the selling pressure remained evident across the broader market.
Looking ahead, near-term sentiment is expected to stay cautious with the index likely to continue consolidating as investors reassess recent gains and await fresh catalysts.
The FBM KLCI is expected to defend the psychological 1,700 level, supported by selective buying interest in defensive and yield-accretive sectors although intermittent profit-taking may continue to cap upside momentum in the near term.
Sentiment may also find some support after the first round of US-Iran peace talks concluded on a positive note, thus helping to ease geopolitical risk concerns.
Technically, the key index has formed a bearish candlestick to hover a hair away from the 1,700 psychological level.
If the aforementioned level is not sustainable, the near-term support is lowered to 1,690 points, followed by 1,686 points. Meanwhile, the immediate resistances remain pegged at 1,718-1,732 points.
Malacca Securities Research
Following the mixed session on Wall Street, we expect the FBM KLCI to trade cautiously today with the fall in crude oil prices expected to benefit airline companies such as AirAsia X Bhd.
Meanwhile, we favour Inari Amertron Bhd which is pending a breakout, supported by multiple tailwinds such as the increasingly complex RF chips required for AI smartphones, a surge in high-speed optical transceiver packaging driven by massive data centre build-outs and a weaker ringgit environment.
Lastly, with the rebound in CPO (crude palm oil) prices and the upcoming El Niño weather conditions, we continue to favour plantation stocks such as SD Guthrie Bhd, Sarawak Oil Palms Bhd and United Plantations Bhd
As the FBM KLCI slipped, its technical indicators are also suggesting mixed signals at this current juncture with the MACD histogram having tilted towards the positive region while the RSI is hovering below 50.
Resistance is seen around 1,715-1,720 with support at 1,680-1,695. – June 23, 2026
