BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks were calmer yesterday as the FBM KLCI managed to stabilise after the steep falls in the past few sessions.
For much of the day, the key index hovered slightly above the positive line albeit it ended the session with minor losses as market players await for more tariff-related news.
The broader market was more sanguine with many stocks rebounding on bargain hunting in line with the recovery in regional indices. Market breadth was also positive as volumes normalised to its recent averages.
Although the key index managed to find some stability yesterday, the overall market environment is still cautious on concerns over the escalating trade war between the US and China with threats of more import tariffs on China goods that could become effective later today.
At the same time, sentiments also remain frail as the tariffs has heightened the recession odds and is likely to keep sentiments in check for longer.
As a result, yesterday’s stability and rebound may become short-lived with the downside bias still looms large with many market players still opting to stay on the sidelines for now.
With the insipid market trend to continue, the supports remain pegged at the 1,415-1,425 levels, followed by the psychological 1,400 level.
The resistances, on the other hand, are at the 1,445-1,450 levels, with the ensuing hurdles set at the 1,455-1,465 levels.
Malacca Securities Research
Following President Trump’s sweeping reciprocal tariffs worldwide, markets are now more likely to stay negative as they await further clarity on US trade policy.
Under this scenario, we continue to favour the defensive sectors, including REITs, consumer products & services, utilities and healthcare – particularly hospitals – which have shown relative stability even during broader market declines.
Meanwhile, with President Trump threatening to impose an additional 50% tariff on China, we believe this could bode well for sentiment across local glove counters where they have shown oversold signals for the past few weeks.
The key index gapped down and continued to trend below the MA (moving average) lines with technical indicators showing negative signals at the current juncture; the MACD histogram having expanded negatively while the RSI is in the oversold territory.
Resistance is anticipated around 1,458-1,463 while support is set at 1,423-1,428. – April 9, 2025
