Market Outlook: Optimism over a compromise on Trump’s tariffs is fuelling recovery

Short-lived gains expected: The index faces stiff resistance at 1,570, with recovery likely tempered by profit-taking and foreign fund outflows.

Compromise

Market drivers: Optimism over a compromise on Trump’s tariffs is fueling the recent recovery, following comments from Commerce Secretary Howard Lutnick.

Lower liners: May see continued bargain hunting as oversold stocks attract interest.

Key events

Investors are watching the EU and BNM interest rate decisions for further cues.

Sector Focus

Defensive stance: Investors may turn to safe-haven assets like gold amid uncertainty.

Trade war beneficiaries: Companies benefiting from supply chain diversification remain attractive.

Export-oriented players: Likely to gain from a stronger US Dollar.

FBM KLCI Technical Outlook

• Indicators remain negative: MACD Line slipped below the Signal Line, and RSI is below 50.

• Immediate resistance: 1,600

• Support level: 1,550

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