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 upward momentum yesterday, breaking above the 1,700 psychological level as gains in PETRONAS-linked and oil & gas (O&G) heavyweights tracked the sharp rebound in crude oil prices.
Trading activity also improved further with total market volume rising to 3.53 billion shares from 3.10 billion shares in the previous session.
Nevertheless, market breadth was fairly even with 538 advancers against 548 decliners, suggesting that the rally on the key index was largely concentrated on selected index heavyweights.
Following the recent strong run-up, the FBM KLCI is expected to adopt a more cautious tone as investors may turn increasingly selective and engage in mild profit-taking, particularly after the index reclaimed the 1,700 level.
Near-term sentiment will likely hinge on the release of China’s 2Q 2026 GDP (gross domestic product) data and the US Producer Price Index (PPI).
Sustained gains in oil prices could continue to underpin commodity-linked heavyweights although broader market upside may remain capped by lingering geopolitical uncertainties and cautious foreign funds positioning.
Technically, the key index has formed another gap up to re-claim the 1,700 psychological level.
After the recent strong strides, profit taking could emerge with the immediate resistance pegged at 1,720 points, followed by 1,728 points. On the contrary, near-term supports are pegged at 1,691 points and 1,683 points respectively.
Malacca Securities Research
Mirroring this global risk-on momentum, the FBM KLCI is poised for a buoyant session with the overnight Nasdaq chip surge expected to ignite a swift tactical rally across local technology counters.
The explicit US shift towards AI (artificial intelligence) hardware directly bodes well for outsourced semiconductor assembly and test (OSAT) leaders such as Inari Amertron Bhd and engineering support proxies such as Frontken Corp Bhd.
Furthermore, this broader relief coupled with the conclusion of the Johor state election, provides a strong macro tailwind for financial heavyweights, thus allowing CIMB Group Holdings Bhd and MAYBANK to cleanly extend their recent moving average breakouts on the back of sustained institutional inflows.
As the FBM KLCI rallied, the benchmark index has firmly sustained its position above its short-term moving average. Despite the MACD histogram contracted slightly, the RSI has maintained above the 50 level.
The index near-term resistance stood at 1,734-1,749 zone while the support is pegged between 1,689 and 1,704. – July 15, 2026
