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 rally as profit taking emerge across nearly two-thirds of the key index components.
Trading activity, however, improved further with total market volume rising to 4.08 billion shares from 3.53 billiuon shares in the previous session.
Market breadth turned positive with 590 advancers outnumbering 475 decliners on rotational play across the broader market.
Expectedly, the FBM KLCI staged a pullback yesterday following its recent three-day rally as investors turned to profit-taking after the key index reclaimed the 1,700 psychological level.
Going forward, we expect the benchmark index to remain range-bound with a slight cautious bias as market participants await the release of US retail sales data later tonight for further insights into the strength of the US economy and the US Federal Reserve’s policy outlook.
Technically, the key index has formed a bearish candlestick and is poised for a potential consolidation as the market continues to digest recent gains.
The immediate resistance remains pegged at 1,720 points, followed by 1,728 points. On the contrary, near-term supports are located at 1,691 points and 1,683 points respectively.
Malacca Securities Research
The FBM KLCI is expected to trade firmer amid improving global risk sentiment with technology counters likely to attract selective buying ahead of TSMC’s earnings later today.
We favour ViTrox Corp Bhd and DUFU Technology Corp Bhd as both have successfully reclaimed their 10-day and 20-day SMAs (Simple Moving Averages), signalling improving near-term momentum.
A constructive update from TSMC could reinforce this bullish technical set-up and drive further accumulation in semiconductor-related names.
Meanwhile, EG Industries Bhd could see heightened trading opportunities after being awarded US$100m worth of contracts.
Despite the minor pullback, the benchmark index comfortably held above its short-term moving average. The MACD histogram showed continued its slight contraction while the RSI has remained healthy above the 50 level.
Immediate support is located between 1,683-1,698 while resistances is pegged around the 1,728-1,743 range. – July 16, 2026
