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Global Trade Tensions Escalate
Wed, 05-Mar-2025 06:57 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: FBM KLCI (-1.0%) tumbled with 23 losers against 5 gainers among the key index component stocks yesterday. The lower liners remained in the red while the Technology sector (-4.4%) was the worst performer among its sectoral peers.

 

Global Markets Review: US stock markets took another beating with the Nasdaq closing in the correction territory as President Donald Trump’s tariffs left investors fearful of potential shockwaves for the economy. Meanwhile, European and Asian markets tumbled as Trump's tariffs took effect, further escalating trade tensions between key partners.

 

Market Outlook: We expect trading sentiment in the FBM KLCI to remain weak today as investors assess the aftermath of Trump’s tariffs on the global economy. With China set to impose additional tariffs of up to 15% on select US goods starting March 10, the trade war between the world’s two largest economies has reignited. Concurrently, Canada and Mexico have vowed to retaliate with counter-tariffs and other measures, further heightening tensions. The rising trade conflict has led to market volatility, as traders grow concerned on a potential resurgence in inflation and a slowdown in global economic growth. The lower liners may continue to languish in the red as volatility remains in the front seat. Going forward, investors will be keeping a close tab onto EU’s PPI data to be release today. 

 

Sector focus. We advocate investors to adopt a defensive stance amid ongoing market uncertainty, with safe-haven assets like gold potentially attracting interest following the recent pullback. We are also bullish on companies benefiting from global supply chain diversification amid the intensifying trade war, while export-oriented players may benefit from the strength of the US Dollar.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI formed another gap down as the key index drifted further from the SMA50 level. Indicators remained negative with the MACD Line tripped below the Signal Line, while the RSI treaded below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,550.

 

Company News (source: various)

Eco World Development Group Bhd said on Tuesday that it is selling a plot of industrial land for RM119 million to a Chinese firm setting up a plant in Malaysia.

 

Paramount Corp Bhd is targeting RM400 million worth of land replenishment deals this year to pave the way for new launches in the next five years.

 

S P Setia Bhd is partnering Penang’s state development agency to develop a mixed-use project and industrial park in Bandar Setia Fontaines, Bertam. 

 

Malaysia Smelting Corp Bhd has proposed a bonus share issuance on a one-for-one basis to reward shareholders and improve the trading liquidity of its shares.

 

Pecca Group Bhd is exploring a potential joint venture (JV) with Zhejiang Tenchen Controls Co Ltd, a Shanghai Stock Exchange-listed seat supplier for the innovation, development and production of seats and accessories for the automotive sector.

 

Electrical home appliance distributor Fiamma Holdings Bhd said its partnership with Zhuhai Samyou Environmental Technology Co Ltd (Samyou) announced last September will proceed, with the Chinese company managing the air conditioning manufacturing operations under its own entity and resources.

Sentiment: Negative
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Market Mover
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