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 on a relatively flattish note on Tuesday after trading in a lacklustre manner as the key index closed 2Q 2026 lower by 1.6% quarter-on-quarter (qoq).
Trading activity edged up with 2.91 billion shares changing hands from 2.71 billion shares in the preceding session.
Market breadth remains positive with 562 advancers brushing past 415 decliners, implying that selective buying interest persisted across the broader market.
The FBM KLCI could trade with a neutral bias tone in the near term as investors await fresh macro-economic catalysts.
Market attention will be focused on the upcoming US ISM Manufacturing PMI which will provide further insight into the health of the manufacturing sector and the broader economic outlook.
In addition, speeches from global central bankers at the annual ECB Forum on Central Banking in Sintra, Portugal will be closely scrutinised for signals on the future trajectory of monetary policy and interest rates.
Technically, the key index has formed a doji candlestick, implying an uncertainty stance. With the key index forming a base building pattern, the immediate resistances remain pegged at 1,684-1,693 points.
Meanwhile, near-term supports are at 1,660 points and 1,647 points respectively.
Malacca Securities Research
Tracking Wall Street’s positive overnight performance, we believe the FBM KLCI will rebound today.
Stock-wise, we favour both THMY Holdings Bhd and EI Power Bhd with the former capturing higher demand for automated test solutions following the global semiconductor upcycle.
The latter, meanwhile, holds an unbilled order book of RM222.5 mil, primarily involving mission-critical power solutions for data centres in Johor.
Lastly, given the on-going El Niño season, sentiment is expected to continue to bode well for the plantation sector, thus benefitting stocks such as Kuala Lumpur Kepong Bhd, United Plantations Bhd and Johor Plantations Group Bhd.
The FBM KLCI has slipped further with its technical indicators still showing weak momentum at this current juncture with the MACD histogram trading at the negative region while the RSI is hovering below 50.
Resistance is seen around 1,679-1,684 with support at 1,644-1,649. – July 1, 2036
