BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI staged a pullback on Monday in line with the broader weakness across regional markets amid escalating geopolitical tensions in the Middle East which weighed on investor risk appetite.
Trading activity moderated with total market volume easing to 3.28 billion shares from 3.45 billion shares in the previous session.
Market breadth, however, turned positive, with 591 advancers outpacing 465 decliners, indicating that selling pressure remains concentrated in selected index heavyweights.
We expect the FBM KLCI to trade with a cautious bias in the near term as investors continue to monitor developments surrounding the Middle East conflict and its potential implications on global risk sentiment, commodity prices and inflationary pressures.
Domestically, investors may adopt a more selective approach following the recent gains while awaiting further catalysts from corporate earnings releases and upcoming economic data.
Market direction is likely to remain influenced by external developments with volatility expected to persist amid heightened geopolitical uncertainties.
Technically, the key index has formed a bearish candlestick to reverse all its previous session gains and could see further weakness.
The immediate resistance is at 1,740 points, followed by 1,750 points. On the flipside, near-term supports remain pegged at 1,712 points and 1,700 points respectively.
Malacca Securities Research
Tracking Wall Street’s negative overnight performance, we expect the FBM KLCI to extend its negative pressure today.
Meanwhile, with the on-going El Niño weather and geopolitical conflict lifting crude oil prices, we expect FCPO (crude palm oil futures) to experience stronger price momentum moving forward, hence favouring plantation stocks such as Kuala Lumpur Kepong Bhd, United Plantations Bhd and TH Plantations Bhd.
Lastly, automated material handling systems (AMHS) provider for the semiconductor industry, Stratus Global Holdings Bhd (M+ target price: RM 2.00), will be making its Main Market debut today.
While the FBM KLCI fell slightly, the technical indicators are still showing positive signals with the MACD histogram trading at its positive territory while the RSI is also above 50.
Near-term resistance sits at 1,742-1,747 with support anchored at 1,702-1,707. – July 21, 2026
