BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI closed marginally lower after a choppy session on Monday as the absence of fresh domestic catalysts kept investors on the sidelines.
Trading activity eased with total market volume falling to 3.45 billion shares from 3.51 billion shares in the previous session.
Market breadth remained negative with 625 decliners outnumbering 559 advancers, implying continued cautious sentiment and a lack of broad-based buying interest.
Going forward, we expect the FBM KLCI to extend its sideways consolidation in the near term amid the unabated exodus of foreign funds while the absence of strong domestic catalysts limits the scope for further recovery.
Nevertheless, downside should remain relatively contained amid resilient domestic fundamentals while investors may continue to favour selective heavyweight and defensive plays.
On the macro front, attention will turn to the US industrial production and manufacturing production data due later which could provide further clues on the strength of the world’s biggest economy and influence expectations for the Federal Reserve’s policy trajectory.
Technically, the key index has formed a doji candlestick and could extend its consolidation mode. The immediate resistances are envisaged at 1,742 points, followed by 1,750 points. Meanwhile, near-term supports are pegged at 1,711 points and 1,700 points respectively.
Malacca Securities Research
Tracking the negative overnight performance on Wall Street, we expect the local bourse to maintain its softer trading tone though Brent crude touching US$91/barrel should benefit the energy sector.
Stock-wise, we like both Life Water Bhd and Hartanah Kenyalang Bhd, the former is expanding into food manufacturing via a RM46.8 mil acquisition of a 90% stake in Hung Tai Group while the latter is scaling its order book with over RM4 bil in active project tenders across Sarawak and Peninsular Malaysia.
Lastly, we continue to favour IOI Properties Group Bhd as owning 10 IOIPG shares entitles investors to buy one IOI REIT stock via its upcoming restricted offer.
The FBM KLCI experienced a mild pullback with indicators showing weakening signals as the MACD histogram continues to decline into the negative territory while the RSI is declining towards 50 level.
Key resistance is pegged at 1,740-1,745 with support expected around 1,705-1,710. – Aug 18, 2026
