BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Berjaya Research
The FBM KLCI rebounded on Tuesday after hovering mostly in positive territory throughout the session, as the key index snapped a three-day losing streak.
Trading activity improved with market volume rising to 3.66 billion shares from 3.45 billion shares in the previous session.
Market breadth remained negative with 762 decliners trouncing 438 advancers, suggesting continued weakness across the broader market.
Going forward, the FBM KLCI could turn cautious ahead of the release of the US Federal Open Market Committee (FOMC) minutes later tonight with investors likely to scrutinise policymakers’ views on the interest-rate trajectory and the potential timing of future policy adjustments.
Meanwhile, the US 30-year treasury yield hit its highest level since 2007 and the bond sell-off reflects a confluence of forces that could capped appetite for riskier assets.
As such, we expect the FBM KLCI to trade on a cautious bias tone in the near term while investors may adopt a more wait-and-see approach ahead of further cues from the US monetary policy outlook.
Technically, the key index has formed a bullish candlestick to defend the EMA20 level. 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
We expect weaker global technology sentiment to weigh on the FBM KLCI while higher Brent crude prices may support selected energy counters and stock-specific momentum remains focused on defensive names with visible catalysts.
We favour Hengyuan Refining Company Bhd following its sharp 1Q 6/FY2026 recovery, supported by stronger refining margins, prices and sales volumes.
Malayan Flour Mills Bhd remains attractive on its RM100 mil expansion across Vietnam and Malaysia, thus easing raw-material costs and a minimum 30% dividend payout policy.
Spritzer Bhd remains supported by its record FY2025 profitability and improving margins although elevated Brent crude prices could put upward pressure on PET resin costs and partially offset the benefits from tourism-driven volume growth.
The FBM KLCI rebounded by maintaining its position well above its 10-day SMA (simple moving average). Underlying indicators remain constructive with the RSI holding above 50 and the MACD histogram could be forming the rounding bottom pattern.
Overhead resistance lies within 1,748-1,763 while support is anchored at 1,703-1,718. – Aug 18, 2026
