BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI mounted a rebound yesterday, making up most of the previous day’s losses amid the return of mild buying interest and in tune with the gains among regional equity indices.
Market conditions were relatively stable as sentiments were calmer amid positive trade negotiations between the US and Japan.
The positivity also spread to the lower liners as they also mounted mild upsides but traded volumes continue to thin to just 2.45 billion shares traded for the day. Nevertheless, market breadth was positive.
Although the key index mounted a recovery yesterday, market conditions are likely to remain relatively cautious heading into the weekend due to the lingering uncertainties over the US tariffs with semiconductor and pharmaceutical products which are apparently next to be tariffed, both of which are among Malaysia’s exports to the US.
This could leave sentiments unsettled again with profit taking dominating trades ahead of the weekend.
Nevertheless, any pullback could be mild for now as there are still bouts of bargain hunting that could provide some measure of market support.
Therefore, the FBM KLCI should be able to find ample support around the 1,470-1,475 levels for now with an interim support at the 1,480 level. The resistances, meanwhile, are at 1,486 points and at 1,490 points respectively.
Malacca Securities Research
Following President Xi’s visit to Malaysia, both countries exchanged 31 MOUs (memorandums of understanding) and agreements spanning multiple sectors like tourism, plantation, technology and construction.
Meanwhile, we expect meaningful orders to flow to Malaysia’s glove manufacturers amid the widening tariff differential against Chinese gloves in conjunction with easing raw material costs which could further support stronger demand and margin expansion.
Separately, we believe the Brownfield expansion which is expected to increase KPJ Healthcare Bhd’s bed capacity by 10% this year would further support its price momentum compounded by medical tourism that would also help boost patient volume.
The key index continued to hover below the MA (moving average) lines with technical indicators showing recovery signals; the MACD histogram expanded in the positive territory while the RSI is approaching 50.
Resistance is anticipated around 1,498-1,503 while support is set at 1,463-1,468. – April 18, 2025
