BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI took another step back on Friday as selling activity from foreign funds which remained unabated for the seventh consecutive session brushed off the stronger-than-expected 2Q 2026 GDP (gross domestic product) that expanded 6.0% year-on-year (yoy).
Trading activity moderated with total market volume easing marginally to 3.51 billion shares from 3.52 billion shares in the previous session.
Market breadth remained negative with 619 decliners outnumbering 538 advancers, reflecting continued cautious sentiment and broad-based selling pressure across the market.
Going forward, the FBM KLCI is expected to maintain a cautious tone amid persistent foreign fund outflows while bracing for a flurry of corporate earnings releases starting this week.
Investors are likely to remain cautious ahead of China’s industrial production and retail sales data which could provide further clues on the strength of the world’s second-largest economy and its implications for regional market sentiment.
Nevertheless, selective rotational buying or bargain hunting could potentially help cushion downside pressure.
Technically, the key index has formed another bearish candlestick to extend its pullback mode. The immediate resistances are envisaged at 1,742 points, followed by 1,750 points. Meanwhile, near-term supports remain pegged at 1,725 points and 1,711 points respectively.
Malacca Securities Research
Tracking the negative overnight performance on Wall Street, we expect the local bourse to kickstart the week on a weaker note.
Meanwhile, we continue to favour Insights Analytics Bhd, underpinned by (i) accelerating water infrastructure roll-outs in Sarawak; (ii) national non-revenue water reduction programmes; and (iii) IAB’s expanding high margin intelligent asset management solutions.
Besides, we also like both Coraza Integrated Technology Bhd and IOI Properties Group Bhd with the former benefiting from soaring global demand for wafer fabrication equipment.
The latter, meanwhile, remains favoured as owning 10 IOIPROP shares entitles investors to buy one IOI REIT unit via its upcoming restricted offer.
The FBM KLCI continued to experience pullback with indicators showing weakening signals as the MACD histogram continues to decline into the negative territory while the RSI is pointing downward toward the 50 level.
Key resistance is pegged at 1,742-1,747 with support expected around 1,707-1,712. – Aug 17, 2026
