Analysts expect sideways trading on Bursa ahead of final corporate results
KUALA LUMPUR: The extension of the deadline to impose tariffs on European imports to the US is giving investors some breathing room as trade tensions surfaced again over the weekend.
Following an impasse in negotiations between US and EU policymakers, Trump's announcement of 50% tariffs on shipments from the bloc sparked another sell-down in equities as investors sought out safer investments.
As the trading week commenced on Monday, Asian markets showed some relief at the tariffs postponement.
Malaysia's benchmark index opened 0.95 points higher at 1,536.33 on Monday.
TA Securities Research noted that the previous week's profit-taking correction has significantly weakened technical momentum and trend indicators on the FBM KLCI.
As such, the broker expects last Friday's rebound to be short-lived.
Looking ahead, local stocks should likely trade sideways with downside bias ahead of the final release leg of a slew of earnings results from local corporates in the upcoming week.
"However, the likely presence of bargain hunters anticipating cheaper
levels should provide much needed support to the local benchmark," it said in its market commentary.
TA Securities added that investors will be paying close attention to announcements from this week's Asean Summit 2025, for cues on the future direction of the region, especially in response to external trade uncertainties.
The firm's stock picks for the week include key banking, construction, oil and gas, and technology-related blue chips.
Lower liners such as CIMB, RHB Bank, Gamuda, Gadang, Dialog, Hibiscus, DNEX and Unisem should attract bargain hunters for looking for recovery plays ahead, it said.
Among the early gainers, Allianz rose 30 sen to RM19.10, Aurelius Tech gained 18 sen to RM3.40 and Nuenergy added 4.5 sen to 47 sen.
Leading actives were Harvest Miracle flat at 18 sen, Eco-shop down one sen to RM1.19 and Sarawak Cable down 0.5 sen to 1.5 sen.
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