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 five-day winning streak on Friday as profit-taking emerged in line with the negative regional markets amid renewed uncertainties over the prospects of a resolution to the US-Iran conflict.
Trading activity eased to 3.31 billion shares from 3.79 billion shares recorded in the previous session.
Market breadth also turned negative with 708 decliners outpacing 451 gainers, implying that the pullback was broad-based.
Expectedly, the local bourse staged a pullback after its recent strong strides. Looking ahead, the FBM KLCI is expected to remain cautious as both Iran and US rejected each other ceasefire proposals.
Until a clearer resolution emerges on the geopolitical front, investors are likely to adopt a wait-and-see approach, keeping upside momentum in check in the near term.
For now, investors will be closely monitoring China’s upcoming inflation and producer price index (PPI) data for further clues on the strength of regional demand and the direction of Beijing’s policy support measures while Malaysia’s retail sales figures will provide additional insight into the resilience of domestic consumption.
Technically, the key index has formed a bearish candlestick and could extend its pullback towards the immediate support located at 1,744 points, followed by 1,732 points. Meanwhile, the resistances are at 1,768-1,780 points.
Malacca Securities Research
As Wall Street ended last week higher, we believe the FBM KLCI will start the week on a stronger footing.
Following the recent hantavirus outbreak, we believe trading interest may favour glove counters, at least in the near term.
As the market re-rates property developers based on their ability to monetise land for the AI infrastructure boom, developers with data centre and industrial exposure such as Sime Darby Property Bhd and Eco World Development Group Bhd are anticipated to see increasing buying interest.
Also, we favour EG Industries Bhd as it has broken above the MA200 (200-day moving average) and is expected to benefit from the ramping up of 1.6T optical transmitter production.
The FBM KLCI retraced marginally with technical indicators showing positive signals at this current juncture as the MACD histogram is trading above the zero line while the RSI is also nearing 70.
Resistance is seen around 1,763-1,768 with support at 1,728-1,733. – May 11, 2026
