BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI extended its gains to close at a two-month high, driven by the stronger-than-expected advance reading of Malaysia’s 2Q2026 GDP data which expanded 5.8% year-on-year (yoy).
Despite the benchmark gains, overall trading activity moderated with total market volume easing to 3.45 billion shares from 3.68 billion shares in the previous session.
Market breadth turned negative with 690 decliners outpacing 413 advancers, indicating that gains remained concentrated in selected heavyweight stocks.
We expect the FBM KLCI to consolidate recent gains on a cautious tone following the renewed geopolitical tension in the Middle East as well as the pullback of chipmakers on Wall Street.
Investor sentiment is likely to remain selective as attention shifts to a busy US corporate earnings calendar over the coming weeks, particularly results from major technology companies which could influence global risk appetite and sector rotation.
Closer to home, investors will continue to assess whether the encouraging economic backdrop translates into stronger corporate earnings while monitoring external developments for fresh market direction.
Technically, the key index has formed another bullish candlestick but could potentially turn cautious.
The next resistance is at 1,740 points, followed by 1,750 points. On the flipside, near-term supports are located at 1,712 points and 1,700 points respectively.
Malacca Securities Research
Tracking Wall Street’s negative closing last Friday, we expect the FBM KLCI to kickstart the week on a softer note, particularly in the technology sector.
Nevertheless, we continue to favour solar stocks following the launch of LSS6 which is expected to benefit compan ies such as Solarvest Holdings Bhd, Pekat Group Bhd and Samaiden Group Bhd.
Meanwhile, with the increase in Brent crude towards the US$88/barrel level, sentiment is expected to bode well for chemical companies, including PETRONAS Chemicals Group Bhd and TMK Chemical Bhd.
Lastly, as Prime Minister Datuk Seri Anwar Ibrahim hasrecently mentioned that the government is considering higher STR and SARA aids, we believe buying interest will be sustained for 99 Speed Mart Retail Holdings Bhd.
The FBM KLCI extended its gains with technical indicators also showing positive signals as the MACD histogram is expanding at its positive territory while the RSI is also approaching 70.
Near-term resistance sits at 1,746-1,751 with support anchored at 1,711-1,716. – July 20, 2026
