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 quick rebound yesterday, regaining its losses a day earlier, as global equity markets continue to display calmness after President Trump considered rolling back some of his tariffs.
The key index also perched at the psychological 1,500 level at the close with bargain hunting resuming.
Lower liners also saw mild buying interest which enabled market breadth to turn positive but traded volumes eased back to just around 3 billion shares for the day.
There could be further near-term gains as market conditions continue to calm from the lingering tariff concerns that had engulfed the key index over the past two months.
Such stability will allow the key index to build up a firmer base around the psychological 1,500 level but further gains will depend on the return of more buying interest, particular from foreign funds after domestic institutions and buyers having provided much of the buying support since 4Q 2024.
As market players await for more tariff developments, including the possibility of lower US import tariffs on China products, the FBM KLCI could revert to a mostly sideway trend for now as it also looks to build up a base.
On the upside, the hurdles are set at the 1,502-1,504 levels, followed by the 1,510 level. On the flipside, the supports are at 1,492-1,495 points and 1,486 points respectively.
Malacca Securities Research
The local bourse is set to open higher, tracking Wall Street performance.
Investors will likely be watching for developments as Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz and his team arrived in the US to push for a review of tariffs on Malaysian imports.
With the US easing its stance on China, a rebound may be in store for beaten-down sectors such as technology.
For defensive plays, investors may look into healthcare, including KPJ Healthcare Bhd, which stands to benefit from brownfield expansion and increased bed capacity this year while glove stocks appear undervalued amid rising demand and significant tariffs differential between Malaysia and China.
The key index broke above the short-term EMA (exponential moving average) with technical indicators showing signs of recovery. The MACD histogram has expanded positively while the RSI is approaching the 50 level.
Resistance is anticipated around 1,516–1,521 while support is located at 1,481–1,486. – April 24, 2025
