BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI failed to build on its previous session gains as escalating geopolitical tensions in the Middle East continued to weigh on investor sentiment.
Trading activity, however, improved ahead of the mid-week break with total volume rising to 3.34 billion shares from 3.19 billion shares in the previous session.
Market breadth remained negative with 780 decliners outnumbering 355 advancers, suggesting that the weakness was broad-based.
Going forward, the FBM KLCI could remain volatile in the near term as heightened geopolitical tensions and concerns over elevated oil prices continue to weigh on investor sentiment.
Following the first US Federal Reserve rate hike since July 2023 with 25bps, the shift towards tighter monetary policy could further weigh on emerging-market equities.
Against this backdrop, we expect market volatility to remain elevated with investors likely to adopt a more cautious stance until there is greater clarity on the geopolitical situation and the trajectory of global interest rates.
Technically, the local bourse has gapped down to form a bearish candlestick, thus drifting further from the 1,700 psychological level.
The immediate resistances are now shifted to 1,700 points, followed by 1,714 points. Meanwhile the supports are located at 1,676 points and 1,670 points respectively.
Malacca Securities Research
On the domestic front, the FBM KLCI is expected to trade on a mixed footing following overnight weakness on Wall Street as elevated oil prices, higher Treasury yields and the Fed’s latest rate hike keep risk appetite cautious.
YTL Power International Bhd could gain traction after securing four additional Siemens Energy gas turbine units, taking total reservations to seven with combined capacity exceeding 5,250MW to support its power and data-centre expansion.
Frontken Corporation Bhd also warrants attention after its subsidiary acquired an industrial property in Tainan, Taiwan for NT$920 mil (RM118.2 mil) to support its future capacity needs.
Elsewhere, UUE Holdings Bhd is expanding into EHV (extra-high-voltage) substation engineering through a new joint venture with EGP Energy, hence positioning the group to pursue larger grid infrastructure projects.
The FBM KLCI extended its decline on Tuesday (Sept 15) by remaining capped below key moving averages as indicators signal on-going weakness. The MACD histogram stays entrenched below zero while the RSI slides toward 30.
Resistance lies within 1,695-1,710 with support pegged at 1,660-1,675. – Sept 17, 2026
