KUALA LUMPUR: There was some reprieve for domestic equities on Tuesday as the market rebounded slightly following the previous day's furious selling.
The benchmark FBM KLCI found support at the 200-day simple moving average and started the day 5.66 points higher at 1,542.14.
Heavyweights retracing their losses included YTL Power up six sen to RM4.04, Telekom rising six sen to RM6.54, PETRONAS Gas climbing 48 sen to RM18.28 and QL Resources adding eight sen to RM6.58.
Top actives on the broader market included Talam down 0.5 sen to two sen, TWL unchanged at 2.5 sen and Hong Seng unchanged at one sen.
Despite yesterday's bearish turn, which saw the index lose 4.9% in a single session, TA Securities Research is maintaining a positive outlook on the market.
According to the research firm, the sell-off was caused by worries over the US entering a recession, a full-scale war in the Middle East and the unwinding of yen carry trade.
However, it said these worries are expected to resolve themselves and the market will find its footing in due course.
"We believe the correction could be limited to between 5% and 8% (1,480 - 1,530) if the direct confrontation between Iran and Israel can be contained as what transpired last April.
"Any further corrections towards the lower band of this level can be a good opportunity to accumulate oversold stocks, especially those related to the domestic sectors like construction and banks, apart from defensive plays in the consumer staples, healthcare, power and utilities sectors and REITs."
Meanwhile, TA Securities maintained its year-end target at 1,690, based on 2025 PER of 14.4x.
It said the Fed’s monetary easing cycle is around the corner and believes the global superpowers will be able to contain the fallout if a war were to break out.
In addition, it said Malaysia’s diverse economy is largely driven by domestic activities, and the impact of any global economic slowdown can be contained by the ongoing structural reforms and long-term economic plans.
