BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI took another step back on Tuesday with more than two third of the key index components ending the session in the negative territory as risk appetite remained subdued.
Trading activity, however, rose to 3.36 billion shares from 3.29 billion shares in the previous session. Market breadth stayed negative with 878 decliners trouncing 325 advancers, reflecting broad-based selling pressure across the market.
Looking ahead, we expect the FBM KLCI to trade with a slight negative bias tone as investors remain cautious over elevated valuations in the artificial intelligence (AI)-related businesses and growing expectations that the US Federal Reserve could maintain a more hawkish stance in its efforts to contain inflation this year.
The combination of valuation concerns and the prospect of higher-for-longer interest rates may keep risk sentiment in check, prompting investors to adopt a more selective approach while searching for fresh domestic catalyst.
Technically, the key index has formed another bearish candlestick to drift further from the 1,700 psychological level.
With the aforementioned level giving way, the next support has now shifted to 1,673 points, followed by 1,665 points. Meanwhile, the immediate resistances are now pegged at 1,693-1,700 points.
Malacca Securities Research
We expect the negative trading tone on the FBM KLCI to persist today with tech stocks experiencing a dip following two consecutive days of sell-downs on the Nasdaq.
With the upcoming El Niño weather conditions, buying interest is expected to persist in cocoa and plantation counters, thus benefitting Guan Chong Bhd, Kuala Lumpur Kepong Bhd and United Plantations Bhd while the fall in crude oil prices is expected to benefit airline companies such as AirAsia X Bhd.
Lastly, we favour both Sunway Healthcare Holdings Bhd and Empire Premium Food Bhd; the former is staging a recovery after being oversold since the end of March while the latter benefits from its on-going network expansion plan.
As the FBM KLCI slipped, its technical indicators are also suggesting mixed signals at this current juncture with the MACD histogram having tilted toward the positive region while RSI is hovering below 50.
Resistance is seen around 1,694-1,699 with support at 1,659-1,664. – June 24, 2026
