BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysia stocks were routed yesterday alongside regional equity indices as President Trump remained steadfast in his plan to imposed reciprocal tariffs on some 180 countries, sending the FBM KLCI to its lowest level since mid-December 2023.
Expectedly, the rout expanded to the lower liners with the FBM ACE and FBM Small Cap shedding some 8% each as total loser trounced gainers on a 10-to-1 ratio.
The selling spree also escalated with 5.4 billion shares traded yesterday with foreign net selling topping 1.1 billion sharess.
Near-term market conditions will remain dour amid the escalating trade dispute between the US and its major trading partners showing no signs of letting up with President Trump now threatening more tariffs on China imports.
Consequently, sentiments will remain frail with selling activity likely to persist with market players pivoting from riskier assets as the risk of a global recession rises.
The continuing selling could also see the FBM KLCI charting new multi-year lows as concerns are also heightened on corporate earnings performances due to the on-going trade war, particularly on companies with large export exposures.
While the sell-off has given rise to ample bargain hunting opportunities on some of the beaten down sector leaders, fresh buying could still be absent due to choppy market conditions and the key index’s supports are now at the 1,415-1,425 levels, followed by the 1,400 level.
The resistances are between the 1,445-1,450 levels and the 1,455-1,465 levels respectively.
Malacca Securities Research
Given the positive Wall Street futures, we expect bargain hunting to emerge in the banking sector; supported by stable loans growth and attractive dividend yields.
Meanwhile, REITs could gain traction due to a steady recovery in footfall.
Following another threat to impose additional 50% tariff on China from the President Trump, we see trading opportunities within glove manufacturing, driven by (i) healthy restocking activities; (ii) blanket tariffs on Chinese glove makers which would shift market dynamics towards Malaysian glove manufacturers; and (iii) the US measles outbreak which may boost demand.
Lastly, we anticipate technical buying opportunities in ITMAX System Bhd, supported by its strong business prospects in Penang.
The key index continued to trend below the MA (moving average) lines amid current volatile environment with technical indicators showing negative signals at the current juncture; the MACD histogram has expanded negatively while the RSI is oversold.
Resistance is anticipated around 1,458-1,463 while support is set at 1,423-1,428. – April 8, 2025
