BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities started the week on an upbeat note, taking cue from Friday’s strong recovery on Wall Street that sent the key index to the 1,480 level at the end the day.
The market was also buoyed by import tariff exemptions on mobile phone and computer peripherals into the US that saw the technology sector gaining the most.
The lower liners were also similarly buoyed by continuing bargain hunting, thus enabling total gainers to beat losers by a 3-to-1 ratio.
Amid the continuing market calmness from the 90-day reciprocal tariff pause and the import exemptions on many E&E (electrical & electronic) items, the FBM KLCI is likely to extend its recovery in the day ahead.
The continuing recovery on many key global equity indices will provide further impetus to the key index’s recovery with bargain hunting to be still prevalent on many of the beaten down sector leaders.
Technology names may again lead the market higher as these stocks are emerging as the biggest winners from the tariff exemptions as these items are also among the country’s key exports.
With the upsides sustaining, the key index could now target the 1,485-1,490 levels before the next psychological level of 1,500 points comes into play again. The supports, meanwhile, are at 1,475 and 1,465 points respectively
Malacca Securities Research
With President Xi’s arrival in Malaysia today, we expect bullish momentum in the FBM KLCI to persist on hopes of increased Chinese investments.
Meanwhile, as China halts rare earth exports to the US, Malaysia has an opportunity to leverage its position to negotiate for tariff relief during the 90-day reprieve as it hosts the world’s largest rare earth processing facility outside of China (Lynas).
Also, we expect negotiation to go well for the local semiconductor and glove sectors.
Lastly, investors may also consider the MSB Global Bhd initial public offering (IPO) (M+ target price: 26 sen) which will be listed on the ACE Market today.
Despite closing higher yesterday, the key index is still trending below the MA (moving average) lines with technical indicators showing recovery signals; the MACD histogram expanded towards zero while the RSI rebounded from the oversold region.
Resistance is anticipated around 1,495-1,500 while support is set at 1,460-1,465. – April 15, 2025
