KUALA LUMPUR: Investors on Bursa Malaysia awaited fresh leads on Wednesday amid ongoing uncertainty over whether the next development in the US tariffs war will escalate or defuse the ongoing trade tension.
Malaysia's benchmark stock index opened flat at 1,486.45, indicating the recovery mood had played out and investors were watching for fresh leads.
While US President Donald Trump's latest temporary suspension on cars had pointed towards an easing in his tariffs policies, he has also suggesed more tariffs may be introduced in the pharmaceutical and semiconductor sectors.
Meanwhile, the US corporate earnings period is gaining pace with investors keenly watching for company bottomlines.
Rakuten Trade noted that the FBM KLC edged above the 1,485 level yesterday as bargain hunters mop up shares deemed trading at rasonable valuations, currently at 13.5x as opposed to the historical 16.5x.
"For today, we expect China’s president Xi Jinping’s visit to Malaysia may ignite some economic optimism hence anticipate the index to hover within the 1,480-1,500 range," it said in a note.
On trade picks, Malacca Securities Research is picking technology stocks despite the sell-down following the US probe into semiconductor imports.
"We believe that software-related stocks will be somewhat insulated from US tariff pressures.
"This might present bargain-hunting opportunities on cybersecurity-related counters such as CLOUDPT and
LGMS, which are also benefiting from the increasing data centre investments in the country," it added in its review.
"Besides, the national utility company, TENAGA, which bagged a RM705mil maintenance contract from the Kuwait government, is expected to continue benefiting from data centre and renewable energy investments in the country."
On Bursa Malaysia, the top active stocks in early Wednesday trade were Revenue up one sen to 10 sen, Pertama Digital rising one sen to 14 sen and Dataprep gaining 0.5 sen to 16 sen.
