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 winning streak on Friday to close marginally below the 1,700 psychological level as the market weakness was largely in tandem with the negative performance across regional peers on heightened geopolitical concerns.
Impacted by the weaker market undertone, trading activity eased to 2.87 billion shares from 3.01 billion shares in the previous session.
Market breadth turned negative with 627 decliners beating 440 advancers, highlighting the broader risk-off sentiment across the market.
Looking ahead, the FBM KLCI is expected to trade with a slightly cautious-to-mildly bearish undertone in the near term as persistent geopolitical tensions in the Middle East continue to weigh on global risk appetite.
The absence of clear de-escalation signals could keep investors on a defensive footing, potentially prompting intermittent profit-taking after the recent rebound.
Meanwhile, market participants will also be monitoring upcoming US industrial production and manufacturing output data which serve as key gauges of economic momentum in the world’s largest economy.
As the recent recovery could not sustain and the key index slipped below the 1,700 psychological level again, downside risk remains prevalent with the immediate near-term support pegged at 1,685 points, followed by 1,670 points.
On the other hand, the immediate resistance is located at 1,711 points, followed by 1,720 points.
Malacca Securities Research
We believe the negative sentiment may spill over to the local market with the closure of the Strait of Hormuz remaining a focal point.
Higher spot rates alongside cost pass-throughs from charterers could benefit MISC Bhd while Hibiscus Petroleum Bhd stands as a clear proxy for elevated global oil prices.
Regarding oversold plays, solar-related companies are trading at attractive valuations supported by sizeable order books as well as supportive government initiatives such as LSS5+ even though China has announced a timeline for ending export subsidies for solar PV components, thus causing a surge in panel prices.
The FBM KLCI closed on a weaker footing. Moreover, technical indicators suggest weaker momentum at the current juncture as the MACD histogram remains in the negative region while the RSI is below 50.
Resistance is seen around 1,713-1,718 with support at 1,678-1,683. – March 16, 2026
