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 seven-session losing streak on Friday as mild bargain hunting activities on selected index heavyweights took precedence.
Trading activity improved with 3.69 billion shares exchanging hands from 3.49 billion shares in the previous session.
Market breadth turned positive with 610 advancers edging past 537 decliners, suggesting that selling pressure has begun to ease somewhat.
Looking ahead, the FBM KLCI is expected to trade with a cautious yet mildly constructive bias as the market attempts to build on last Friday’s recovery following the prolonged seven-session losing streak.
Investors will be closely monitoring a flurry of corporate earnings releases due this week which are expected to inject stock-specific volatility into the market with better-than-expected results potentially providing pockets of buying interest while earnings disappointments could reignite selling pressure.
The upcoming release of Malaysia’s Producer Price Index (PPI) data will be closely watched as an early indicator of input cost pressures with its potential pass-through implications on corporate margins and consumer prices.
Technically, the key index has formed a gap up and is attempting to find stability. Should a recovery take place, the immediate resistance is located at 1,721 points, followed by 1,737 points.
Conversely the 1,700 psychological level remains as the key support, followed by the 1,690 level.
Malacca Securities Research
Following the closure of the US stock market, we anticipate that the FBM KLCI will start the week with softer trading volume.
Technically, traders could take positions in ECA Integrated Solution Bhd following its pullback toward the EMA20 while fundamentally, it has experienced a positive turnaround in its past two quarters after two consecutive years of losses and is poised to benefit from the AI and semiconductor boom moving forward.
Meanwhile, with power engineering solutions provider EI Power Bhd closing higher on its second day of listing, we expect it to continue its bullish momentum today with our non-rated report fair value at 66 sen/share.
Lastly, traders could take partial profits while waiting for pullback entries from tech counters.
While the FBM KLCI rebounded marginally, its technical indicators are still showing weakening signals as the MACD histogram is still trading in the negative territory while the RSI has traded below 50.
Resistance is seen around 1,727-1,732 with support at 1,692-1,697. – May 25, 2026
