Market Sentiment Improves Amid Tariff Pause

The FBM KLCI closed higher on Tuesday, gaining 0.7% as investors engaged in bargain hunting, particularly in CIMB, Sunway, and Public Bank. Sector-wise, Telecommunication & Media (+1.1%), Construction (+1.0%), and Financial Services (+1.0%) led the gains, while Healthcare (-0.5%) and Energy (-0.3%) were the biggest losers.

Market Outlook: Market sentiment improves

The local market is expected to trade range-bound amid a lack of fresh catalysts and continued foreign selling pressure. Investors will focus on global PMI data and the US jobs report for further direction. Defensive sectors like hospital operators and REITs may attract buying interest, while Construction could see bargain hunting post-festive sell-off.

Technical Outlook

The FBM KLCI is in a short-term consolidation phase, with resistance at 1,600 and support at 1,530. Indicators remain weak, with the MACD below the Signal Line and the RSI nearing oversold territory.

Global Markets Brief:

Wall Street: All three major indices rose as investors brushed off tariff concerns.

Europe: Stocks climbed, led by Automobile shares, amid focus on corporate earnings.

Asia: Markets rallied, tracking Wall Street’s optimism. Nikkei (+0.7%), Kospi (+1.1%), and Hang Seng (+2.8%) saw strong gains. Chinese markets reopen today after the Lunar New Year break.

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