BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI resume trading on Tuesday on a softer note, weighed down by the escalating geopolitical tension in the Middle East over the weekend.
Trading activity, however, remained firm with 3.35 billion shares exchanging hands compared to 3.33 billion shares in the previous session as investors gradually return from the extended weekend festive break.
Market breadth remained negative with 967 decliners overwhelming 283 advancers with all 13 major sectors closing in the red.
While the near-term outlook remains cautious amid lingering external uncertainties, the FBM KLCI could stage a potential technical rebound, supported by bargain hunting and improving participation as market activity normalises post-festivities.
However, upsides may be capped by volatility in global energy markets and persistent geopolitical risks.
Investors should closely monitor developments in oil prices, particularly inventory trends in the upcoming US Energy Information Administration release as fluctuations could influence inflation expectations, subsidy dynamics and overall market sentiment.
Technically, the FBM KLCI has formed a bearish candlestick, suggesting the bearish undertone could remain in place. Key support levels have now shifted to the 1,700 psychological level, followed by 1,685 points. Meanwhile, 1,720 points and 1,737 points will serve as the immediate resistances.
Malacca Securities Research
Amid on-going uncertainty in the Middle East and continued volatility in oil prices, we expect the risk-off environment to persist in the local bourse.
This may favour energy and chemical counters such as Dialog Group Bhd, Hengyuan Refining Company Bhd and Petronas Chemicals Group Bhd.
Should Iran persist in its threats to close the Strait of Hormuz, MISC Bhd could benefit as the shipping line can command higher spot rates by passing war-risk premiums on to charterers.
Finally, despite the IRB (Inland Revenue Board) discontinuing the 10% preferential withholding tax (WHT) rate on REITs, we have observed ‘hammer’ candlestick patterns forming across most REITs, potentially signalling the start of value-picking activities.
The FBM KLCI started off the week on a weaker footing with technical indicators suggesting mixed signals at the current juncture as the MACD histogram expanded into the positive region while the RSI is below 50.
Resistance is seen around 1,723-1,728 with support at 1,688-1,693. – March 25, 2026
