Opening Daily Highlight
Local
Reciprocal Tariff May Impact Sentiment
Thu, 03-Apr-2025 10:29 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI (+0.9%) started off the week on a strong footing, driven by gains in selected banking, utilities and telco heavyweights yesterday. The lower liners, however, extended their pullback as profit taking activities remain in place. Sector wise, 9 out of 13 sectors closed in red with the Technology sector (-1.9%) taking the worst hit.
 

Global Markets Review: Wall Street finished higher with all three major indices closed in green as US President Donald Trump unveiled the reciprocal tariffs between 10-49% that will be applicable to all US trading partners. Across Europe, markets were jittery ahead of the announcement of US reciprocal tariff. Meanwhile, Asian markets ended mixedas uncertainty lingers over the size and scope of reciprocal tariffs on US imports.
 

Market Outlook: After staging a decent run yesterday, we believe sentiment will be rocky following the announcement of reciprocal tariff from US with Malaysia being hit at a rate of 24%. A potential knee jerk pullback may materialise as the key index looks to defend the 1,500 psychological level. Any pullback will present opportunities for investors to bargain hunt onto fundamentally sound stocks, particularly those whom have minimal exposure to US export markets. The lower liners are expected to remain downbeat amid concerns over the implication of tariff implementation as investors digest the context of reciprocal tariff announcement. Economic wise, investors will be keeping a close tab onto the release of services data from several major nations such as Japan, China, Eurozone and US.
 

Sector focus. Under the prevailing potential market volatility, we advocate investors to opt for a defensive stance, favouring the REIT, Healthcare (ex-gloves) and Utilities sector. We reckon the Technology sector which has a high exposure to US export markets may remain as one of the biggest underperformers today.

Technical Commentary: The FBM KLCI formed a bullish candle to recover part of its previous session losses. Indicators remained mixed with the MACD Line hovered above the Signal Line, while the RSI is below 50. A consolidation may prolong with trading range between 1,480-1,530. Immediate resistance is located at 1,550. Support is envisaged around 1,500.

Company News (source: various)

After the sudden resignation of its executive deputy chairman that led to a 36% share price crash in a single day, T7 Global Bhd says it is not under investigation by the authorities.
 

Petronas Gas Bhd announced that the gas leak fire in Putra Heights was successfully contained, with the affected pipeline isolated by 4pm on the same day. 
 

Gas Malaysia Bhd announced that it has reduced gas supply to several areas to manage disruptions following the temporary closure of gas facilities due to the gas pipeline blaze in Putra Heights on April 1. 
 

IJM Corp Bhd’s commercial property at 25 Finsbury Circus, London, has secured international law firm Simmons & Simmons LLP as its anchor tenant under a 20-year lease.
 

Rohas Tecnic Bhd’s 86.8%-owned subsidiary HG Power Transmission Sdn Bhd has won an arbitration case against the Power Grid Company of Bangladesh Ltd (PGCB). 
 

The major shareholders of ICT Zone Asia Bhd, which is in the process of transferring from the LEAP Market to the ACE Market, have successfully completed their exit offer for shares they did not previously own. 
 

Capital A Bhd has been granted an extension until April 15 to issue the shareholder circular for its Practice Note 17 regularisation plan. 
 

YNH Property Bhd expects the independent review of its joint venture (JV) and turnkey contracts to be ready by April 9, following concerns raised by former external auditor Baker Tilly Monteiro Heng PLT. 
 

OCK Group Bhd has stated that the recent earthquake in Myanmar caused only minimal damage to its tower network, with just four sites affected and no disruption to service. 

Sentiment: Negative
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