BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index slipped yesterday in tune with the overnight weakness on Wall Street a day earlier when President Trump threatened to fire the US Federal Reserve chairman Powell for not lowering interest rates in addition to the fresh US tariffs on ASEAN solar panels.
Except for plantation stocks, other Bursa sector indices all fell as selling activity resumed on many of the lower liners which left total losers to beat gainers by a 2-to-1 ratio. The selling pressure also contributed to nearly 3.5 billion shares traded yesterday.
With President Trump dismissing claims that he will fire the Fed chairman, US markets rebounded overnight with this positivity likely to spread to Malaysian equities, potentially allowing for the key index to mount a quick recovery as bargain hunting may emerge again.
At the same time, the US government is also unlikely to ratchet up the import tariffs further, thus allowing for more market calmness to return – at least over the near-term.
Nevertheless, the unsettled underlying market condition could still keep the recovery prospects in check as market players continue to assess the near-to-medium term market outlook.
On the upside, the rebound could see the key index target the 1,492 level before testing the psychological 1,500 level again. The supports, on the other hand, are at 1,480-1,483 points and at 1,475 points respectively
Malacca Securities Research
Given the positive Wall Street futures, we expect bargain hunting activities to spill over into the local market with the technology sector likely to be one of the key beneficiaries.
Glove manufacturers could be undervalued due to potential mid-term recovery in order flows and improved cost competitiveness as US tariffs weigh on Chinese peers.
Besides, we anticipate a rebound in the banking sector due to stable earnings and attractive dividend yields.
For a defensive positioning, investors may rotate into domestically-oriented consumer names like 99 Speed Mart Retail Holdings Bhd and safe-haven proxies to hedge against lingering economic turmoil.
The key index broke above the short-term EMA (exponential moving average) with technical indicators showing signs of recovery. The MACD histogram expanded positively while the RSI approaching the 50 level.
Resistance is anticipated around 1,501–1,506 while support is located at 1,466–1,471. – April 23, 2025
