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 for the fourth consecutive session on Monday in line with the weakness across regional markets on concerns that the geopolitical tension in Middle East could prolong.
Trading activity eased to 3.53 billion shares exchanging hands from 3.92 billion shares in the previous session.
Market breadth stayed negative with 843 decliners overwhelming 417 advancers, suggesting that selling pressure continued to dominate as investors adopted a cautious stance amid the prevailing uncertainty.
Looking ahead, the FBM KLCI is expected to trade with a cautious bias amid lingering geopolitical uncertainties in the Middle East and a lack of fresh positive catalysts to reinvigorate buying interest.
The index may continue to face mild downside pressure in the near term with investors likely staying defensive ahead of the release of Malaysia’s inflation rate data which will be closely watched for cues on the domestic economic trajectory and any potential implications on Bank Negara Malaysia’s (BNM) monetary policy stance.
Adding to the mix, investors will be watchful over the batch of corporate earnings releases that has begun to roll out.
Technically, the key index has formed another bearish candlestick to slip below the 1,732 support level and extended its pullback mode.
The next support is shifted to 1,725 points, followed by 1,720 points. Meanwhile, the immediate resistance is located at 1,745 points, followed by 1,750 points.
Malacca Securities Research
Tracking Wall Street’s mixed performance, we expect the FBM KLCI to trade in a risk-off mode.
Following the recent ARM partnership deal, the market has been focusing on front-end IC (integrated circuit) design companies with Oppstar Technology Bhd surging 18.5% following the announcement of its collaboration with Japan-based AI solutions provider Tokyo Artisan Intelligence Co Ltd to develop a re-configurable AI chip.
Elsewhere, Penang-based integrated circuit designer SkyeChip Bhd will be making its Main Market debut tomorrow (May 20).
Looking at Oppstar’s candlestick close, we expect further upside momentum today though traders are advised to engage only in short-term trading given the stock’s current overbought condition.
With the further pullback in the FBM KLCI, the technical indicators start to show weakening signals as the MACD histogram has expanded toward the negative territory while the RSI has started to trade below 50.
Resistance is seen around 1,742-1,747 with support at 1,707-1,712. – May 19, 2026
