0319 GMT - Malaysian equities could face temporary softness over the next two quarters, driven by heightened geopolitical risk, ringgit weakness and delayed Fed rate cuts narrowing the interest rate spread, Hong Leong IB analysts Jeremy Goh and Felicia Ling say in note. However, KLCI earnings appear largely insulated from the Iran conflict's initial impact, with the banking, utilities, healthcare and telco sectors insulated. Among the KLCI constituents, potential positives may come from plantation, Petronas Chemicals and Press Metal Aluminium, while construction, consumer and Petronas Dagangan could face headwinds. The market is expected to regain momentum later this year and current levels are viewed as attractive for accumulation. Hong Leong maintains its end-2026 KLCI target at 1790, with CIMB, Tenaga Nasional and IHH Healthcare are among its top picks.(yingxian.wong@wsj.com)
(END) Dow Jones Newswires
April 02, 2026 23:19 ET (03:19 GMT)
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