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 three-day winning streak on Tuesday, weighed down by profit taking alongside the weakness across regional markets.
Trading activity was flattish with 2.69 billion shares exchanging hands, relatively unchanged compared to the prior session.
Market breadth remained negative with 577 decliners overpowering 410 advancers, suggesting that selling pressure persisted across the broader market.
The FBM KLCI is expected to turn cautious over the near term amid renewed concerns over the fresh attacks on an LNG carrier near the Strait of Hormuz, reigniting geopolitical risk premiums and raising concerns over potential disruptions to global energy supplies that could also weigh on overall market sentiment.
Market attention is expected to turn towards the release of the US FOMC (Federal Open Market Committee) meeting minutes which could provide further clues on the Federal Reserve’s interest rate trajectory.
A hawkish tone could potentially reinforce expectations of a prolonged higher-for-longer interest rate environment, hence weighing on risk appetite and limiting near-term upside across regional equity markets.
Technically, the key index has staged a mild pullback with the immediate resistances remain located at 1,684-1,690 points. On the flip side, near-term supports are pegged at 1,656 points and 1,648 points respectively.
Malacca Securities Research
Tracking Wall Street’s negative overnight performance, we expect sentiment on the FBM KLCI to remain mixed with immediate selling pressure concentrated in the tech sector.
However, we still favour SkyeChip Bhd following its strategic engineering partnership with US-based AI chip pioneer Cerebras Systems for advanced AI chip design.
Meanwhile, the recent pullback in YTL Power International Bhd presents a healthy entry point as the utility giant is structurally well-positioned to leverage the rapid expansion of AI-driven data centres and the subsequent surge in electricity demand.
Lastly, we like Sabah-based Life Water Bhd as it rides on powerful, multi-pronged tailwinds, including (i) the upcoming Visit Malaysia 2026 tourism boom; (ii) margin expansion driven by higher ASPs (average selling prices); and (iii) the acceleration of its market penetration into Sarawak and Brunei.
With the FBM KLCI having rebounded, its technical indicators are showing recovery signals at this current juncture as the MACD histogram has started to expand towards the positive region while the RSI is also approaching 50.
Resistance is seen around 1,697-1,702 with support at 1,662-1,667. – July 8, 2026
