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 after reversing all its intraday gains as concerns over elevated US bond yields and the prospects of further monetary tightening by the Federal Reserve continued to weigh on sentiment.
Trading activity, however, improved, with total volume rising to 3.60 billion shares from 3.34 billion shares in the previous session.
Market breadth remained negative with 673 decliners outnumbering 465 advancers, indicating broad-based selling pressure.
Going forward, we maintain a cautious bias on the FBM KLCI amid elevated US Treasury yields and lingering concerns over the global interest rate outlook.
Nevertheless, the recent weakness could increasingly attract bargain hunting as the key index approaches oversold territory, particularly among fundamentally sound counters.
Investors will also be monitoring the upcoming Bank of Japan (BOJ) interest rate decision and Malaysia’s inflation data for further clues on the regional monetary policy outlook and domestic price pressures.
Technically, the key index has formed another bearish candlestick to maintain its pullback mode. The immediate resistances are now shifted to 1,687 points, followed by 1,700 points. Meanwhile the supports are located at 1,666 points and 1,655 points respectively.
Malacca Securities Research
On the domestic front, the FBM KLCI is expected to trade on a stronger footing, tracking overnight gains on Wall Street with the recovery in global technology stocks providing some support.
Inari Amertron Bhd remains a recovery play on expectations of improving RF (radio frequency chip) utilisation from the September flagship cycle and continued AI-driven photonics demand.
We continue to favour Frontken Corporation Bhd, supported by its NT$920 mil (RM118.2 mil) acquisition of industrial land and factory buildings in Tainan, Taiwan to accommodate future capacity expansion.
Meanwhile, Glomac Bhd returned to profitability in 1Q FY4/2027 with RM7.6 mil in net earnings on more than doubled revenue while Binastra Corp Bhd posted 2Q FY1/2027 net earnings of RM50.6 mil (+78.1% year-on-year) with its order book reaching c.RM6.7 bil.
The FBM KLCI continues to trade below its 10-day SMA as momentum indicators show mixed signals. The MACD has formed a rounding bottom while the RSI has slid toward 30.
Key resistance is pegged at 1,727-1,742 with support expected around 1,682-1,697. – Sept 18, 2026
