BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI retreated prior to the long festive break on the back of selling activities across index heavyweights in the final minutes of the trading session.
Trading activity remained flattish at 3.36 billion shares as investors retreated ahead of the extended weekend festive break.
Market breadth turned negative with 707 decliners outstripping 442 advancers on signs of profit taking among the lower liners following their recent rebound.
Going forward, the FBM KLCI is expected to trade on a cautious tone as lingering external uncertainties over the Middle East conflict and inflation outlook continues to cloud the prospects of further recovery.
Despite improving domestic fundamentals and selective earnings resilience that may provide some support, upside potential could remain capped amid intermittent profit-taking and subdued foreign fund flows.
As the US Federal Reserve painted a more hawkish stance on the future interest rate direction, the risk of foreign funds outflows could also keep a lid on further gains.
Technically, the FBM KLCI has formed an inverted hammer candlestick, implying a bearish undertone.
Key support levels are pegged at 1,711 points, followed by the 1,700 psychological level. On the upside, the resistances are located at 1,737 points and 1,750 points respectively.
Malacca Securities Research
Following President Donald Trump’s decision to pause strikes on Iranian power plants, we anticipate the FBM KLCI will extend its bullish momentum.
As decision by the Inland revenue Board (IRB) to withdraw preferential rates for REIT withholding tax may be viewed less appealing to investors, we believe dividend hunters might shift towards banking stocks in the near term.
Nevertheless, in view of further retracement in REIT prices, IGB REIT, IGB Commercial REIT and Sunway REIT may be favoured as they continue to demonstrate strong tenant retention and effective asset enhancement initiatives.
Finally, counters such as ViTrox Corp Bhd, Coraza Integrated Technology Bhd and TSH Resources present attractive trading set-ups.
The FBM KLCI stayed above the 1,700 psychological support level with technical indicators suggesting improving momentum at the current juncture as the MACD histogram expanded into the positive region while the RSI is above 50.
Resistance is seen around 1,735-1,740 with support at 1,700-1,705. – March 24, 2026
