BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bursa Malaysia stocks resumed their slide yesterday as concerns over the trade war mounted, sending the key index to end the day at the psychological 1,400 level – its lowest level since July 2023.
The market’s weakness was also in line with the rout in many Asian equity indices that also reacted negatively to the tariffs.
Unsurprising, total losers again overwhelmed gainers by a wide margin as the broader market shares stumbled again with volumes also picking up to nearly 3.8 billion shares.
Malaysian equities are set for a relief rally after the US rolled back the tariffs to 10% for 90 days, immediately easing the trade dispute concerns that has plagued the market over the past week.
Strong bargain hunting activities could also emerge among FBM KLCI listed stocks that were beaten down recently following Wall Street’s surge overnight after the tariff reprieve was announced.
The FBM KLCI’s recovery could be significant due to its attractive valuations that would encourage renewed buying interest.
The key index could regain the next psychological level of 1,450 points in the near-term as investors pick-up the beaten down heavyweights like banking and utility stocks.
In between, there are resistances at 1,423 points and 1,437 points. The supports, meanwhile, are at 1,396 points and 1,385 points respectively.
Malacca Securities Research
With President Trump pausing the reciprocal tariffs plan for a period of 90-day, we expect the local bourse to stage a relief rally today, tracking the positive overnight performance in the US.
However, since the pause is for a period of 90-day and amid the on-going uncertain market environment, we continue to favour the domestic-driven and defensive sectors, including construction, REITs, consumer products & services, utilities and healthcare, particularly hospitals.
The 125% tariff on China could bode well for our local glove manufacturers, some of which are showing signs of bottoming out.
The key index gapped down and continued to trend below the MA (moving average) lines with technical indicators showing mixed signals at the current juncture; the MACD histogram expanded negatively while the RSI is in the oversold territory.
Resistance is anticipated around 1,415-1,420 while support is set at 1,380-1,385. – April 10, 2025
