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 retreated again yesterday, falling in tandem with Wall Street’s overnight losses as well as fewer bargain hunting opportunities after the key index’s recent recovery from the tariff induced sell-down.
Conditions were also more cautious after President Trump indicated that he could impose tariffs on semiconductor imports next week.
There was also profit taking on the lower liners, thus causing losers to beat gaining stocks for the day with traded volumes also slipping.
Following the past few sessions’ recovery, market condition are turning increasingly indifferent as there are fewer bargain hunting opportunities with market players awaiting more clarity on the US tariffs for direction.
As the market is also still cautious over the economic and corporate earnings outlook that are still unfolding, volatility will remain a feature for longer.
The overnight rout on Wall Street could also sap market sentiments again and may cause further profit taking from the recent recovery with technology stocks remaining vulnerable due to the NVIDIA’s potential write off and lingering concerns that President Trump will announce tariffs on semiconductor items soon.
As such, the downward bias is likely to prolong with the immediate support of 1,475 points may not hold. The FBM KLCI may instead re-test the next supports at 1,464 and 1,454 points respectively. The resistances, meanwhile, are at 1,480 points and 1,487 points respectively.
Malacca Securities Research
Following President Xi’s visit to Malaysia, both countries exchanged 31 memorandums of understanding (MOUs) and documents covering investments and collaborations across various sectors, potentially providing positive sentiment for the local market.
Sectors such as tourism, plantation, technology and construction may be beneficiaries.
With the US now imposing up to 245% tariffs on selected Chinese imports, we believe this will bode well for the local glove manufacturers.
Lastly, following cybersecurity firm Kaspersky reporting a 153% rise in ransomware attacks on Malaysian businesses in 2024, we are positive towards cybersecurity-related counters like Cloudpoint Technology Bhd and LGMS Bhd which may be insulated against US tariff pressures.
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 1,491-1,496 while support is set at 1,456-1,461. – April 17, 2025
