BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resumed its recovery yesterday, taking its cue from the positive performance on Wall Street overnight following softer-than-expected US economic data which reinforced expectations of a more accommodative US Federal Reserve policy stance.
Trading activity, however, moderated with total market volume easing to 3.68 billion shares from 4.08 billion shares in the previous session.
Market breadth remained relatively balanced with 576 advancers against 550 decliners.
We expect the FBM KLCI to build on its recent recovery, supported by improving global risk appetite and bargain hunting in selected index heavyweights.
Investors will closely monitor Malaysia’s inflation data and the advance estimate of 2Q 2026 GDP (gross domestic product) with resilient domestic macro-economic indicators likely to reinforce confidence in the country’s growth outlook.
Nevertheless, gains could remain measured as investors continue to assess the interest rate trajectory and broader external developments while rotational buying across sectors is expected to persist.
Technically, the key index has formed a bullish candlestick to breakout above 1,720 point and looks to maintain its positive momentum.
The next resistances are at 1,728 points, followed by 1,740 points. On the flipside, near-term supports are located at 1,700 points and 1,691 points respectively.
Malacca Securities Research
The FBM KLCI is expected to trade slightly softer in view of the overnight pullback in US semiconductor stocks with immediate selling pressure concentrated in the local technology sector.
However, we anticipate that any downside risks could be cushioned by widespread optimism surrounding the official launch of the Large-Scale Solar 6 (LSS6) programme.
Moving forward, we expect tactical buying interest to rotate towards renewable energy and energy storage plays.
Counters such as Solarvest Holdings Bhd, Samaiden Group Bhd, BM GreenTech Bhd and Pekat Group Bhd are poised to emerge as primary beneficiaries given their established EPCC capabilities and strong exposure to utility-scale solar and BESS opportunities.
As the FBM KLCI rebounded, the local bourse has held above its short-term moving average. Despite a slight MACD histogram contraction, the RSI remains well above 50.
Near-term resistance sits at 1,737-1,752 with support anchored at 1,692-1,707. – July 17, 2026
