BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Expectedly, Malaysian stocks lost ground yesterday following President Trump’s reciprocal tariffs on Malaysian exports that attract a 24% tariff.
The selling was widespread as market sentiments were affected by the steeper-than-expected tariffs but glove stocks bucked the weakness as they emerge as potential beneficiary of the tariff.
Selling activity also permeated to the broader market with total losers again ahead of gainers for the day.
Near-term market conditions are likely to stay unsettled with downward bias still remains as the effects of the tariffs are digested.
As it is, stock markets around the world are still coming to terms with the hefty tariffs with the slump in key global equity markets overnight to reverberate to Malaysian equities for the time being.
This would sustain the market’s volatility with the key index is likely to end the week on a sombre note again.
Nevertheless, the downsides could again be measured as the direct impact on the Malaysian economy could be limited as its exports to the US only amounts to about 10% of the country’s total exports.
At the same time, the FBM KLCI’s year-to-date (YTD) losses have partly reflected the tariffs and with valuations also undemanding, selling could be limited.
The FBM KLCI’s supports are now at 1,510-1,513 levels, followed by the 1,505 points while the resistances are at the 1,526 and 1,531 levels respectively.
Malacca Securities Research
As investors anticipate that heavier tariffs on Chinese gloves will benefit local glove players, we expect the rebound momentum to persist, supported by yesterday’s strong volume, suggesting bottom-fishing opportunities.
Meanwhile, we maintain our view that investors will gravitate toward sectors that are less affected by reciprocal tariffs, including utilities and consumer products & services.
Sub-utility company MN Holdings Bhd recently secured its largest direct contract from Tenaga Nasional Bhd (TNB) worth RM137.8 mil which brings its total order book to RM977.8 mil, and is likely to continue benefiting from TNB’s contracts.
Lastly, investors may consider the upcoming MSB Global Bhd’s (M+ TP: 26 sen) initial public offering (IPO0) which application closes today.
The key index continued to trend below the MA (moving average) lines amid current volatile environment with technical indicators showing mixed signals at the current juncture; the MACD histogram stayed above zero while the RSI is trending below 50.
Resistance is anticipated around 1,533-1,538 while support is set at 1,498-1,503. – April 4, 2025
