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 maintained its uptrend yesterday, riding on expectations that President Trump’s upcoming import tariffs will be less punitive than earlier indicated.
Bargain hunting was still prevalent on selected index-linked stocks in the telco and consumer segments with the key index testing the 1,520 support during the session.
Nevertheless, lower liners turned mixed on quick profit taking, resulting in the overall market breadth becoming negative again.
Despite suggestions that the US tariffs to be introduced early next month are possibly lower than expected, the latest moves suggest otherwise with plans to impose 25% tariffs on foreign made cars next week.
This could cause knee jerk reaction to global automotive related companies with wider implications to other sectors as well.
As a result, market conditions could become choppier again as global equities, including those on Bursa Malaysia, realign their expectations.
The uncertainties could see quick profit taking activities returning to the fore and the FBM KLCI could surrender some of its recent gains.
The selling could see the key index slipping back to the immediate supports at the 1,510-1,513 levels and if it fails to hold, the other supports of 1,505 and the psychological 1,500 levels would come into play.
The resistances, meanwhile, are at the 1,520-1,522 levels, followed by 1,525 level.
Malacca Securities Research
Traders may focus on the oil & gas (O&G) sector amid (i) the US imposing 25% tariffs on Venezuela’s trading partners; and (ii) the US maximum pressure on Iran which is expected to support near-term oil prices.
Besides, we remain positive on Aumas Resources Bhd (previously Bahvest Resources Bhd) as we believe the momentum for gold price may persist in the near term, driven by on-going uncertainties surrounding US trade policies and concerns over weakening US consumers’ sentiment.
Meanwhile, despite ITMAX System Bhd’s high valuation, we maintain our positive stance, supported by its recent contract wins with the Pengerang Municipal Council combined with its growth prospects in Penang.
The key index continued to trade below the EMA bands with technical indicators showing a mixed signal at the current juncture; MACD histogram expanded positively while the RSI remained below 50.
Resistance is anticipated around 1,533-1,538 while support is set at 1,498-1,503. – March 27, 2025
