Markets were in deep blue territory due to concerns over reciprocal tariffs, but staged a sharp relief rally after President Trump announced a 90-day pause on steep tariff hikes. Global stocks rebounded following a strong surge on Wall Street, where the S&P 500 soared 9.5%—its best daily gain since 2008—and the tech-heavy Nasdaq jumped 12.2%, marking its largest single-day rise since 2001. Despite the rally, market participants remain cautious about its sustainability, as the 90-day pause only adds to uncertainty. The U.S. dollar weakened to 102.45 in early global trading, retreating from its gains the previous night. Traders are now pricing in just three rate cuts by December, down from four projected earlier in the week.
To recall, on 2 April, President Trump announced a comprehensive reciprocal tariff, imposing a baseline 10% tariff on all trading partners (effective 5 Apr), with significantly higher rates targeting specific countries (effective 9 Apr). Malaysia is among the least affected ASEAN countries, with 24% tariff being imposed. For now, the reciprocal tariff exempts critical goods under 50 USC 1702(b), steel, aluminium, and autos/auto parts subject to Section 232 tariffs. Other exemptions include copper, pharmaceuticals, semiconductors, lumber, bullion, energy, and selected minerals not available in the US. However, it is very clear that President Trump’s goal is not to bring the tariff to zero, but rather to achieve a zero trade deficit.
We believe that despite the 90-day reprieve, uncertainty would continue to dominate the landscape, with the global macroeconomic outlook under pressure from erratic and inconsistently communicated U.S. policies—especially the on-again, off-again tariff rhetoric. However, it is almost certain that GDP forecasts across a range of countries—from East to West—are likely to face downward revisions. In this uncertain and volatile economic and policy landscape, we prefer companies with strong earnings visibility, particularly those that are more insulated from trade wars (e.g., domestic-focused sectors) or could even benefit from supply chain relocations due to the trade tension. We believe market focus will remain on fundamental strength and value investing, viewing any market weakness as an opportunity.
Phillip Capital Malaysia and our offerings
We reaffirm our belief that there are still opportunities in the market, and we maintain a discerning approach in choosing high-quality stocks for our portfolio. However, it is crucial to exercise caution and carefully select investment options to ensure the best risk-adjusted returns. By taking a vigilant and discerning approach, investors can potentially reap the benefits of the current market opportunities while minimising risks.
A noteworthy avenue for investors seeking diversification in their portfolio is through PhillipCapital Malaysia. PhillipCapital Malaysia offers multiple private mandate services managed by professional fund managers. By leveraging PhillipCapital Malaysia’s private mandate services, investors can enhance their resiliency, optimise portfolio performance, and navigate the complexities of the market with confidence.
We also offer both conventional and Shariah-compliant options to cater to the needs of all investors. For Malaysia’s mandates, we like:
- PMART/PMA Dividend Enhanced and/or PMART/PMA Dividend Enhanced ESG
Our PMART Dividend Enhanced and PMA Dividend Enhanced is an income-driven portfolio focused on high dividend-yielding equities. We apply the Dog of the Dow approach, screen and select top market cap stocks to minimise risk and ensure consistent performance. The portfolio is an equal weighting portfolio which reduces concentration risk and provides similar exposure to all clients, both initially and after rebalancing. We offer both conventional and Shariah investment options to cater to the diverse needs of our investors. Click here to learn more. We recently also introduced PMART/PMA Dividend Enhanced ESG Mandate as we remain dedicated to investing in ESG stocks given their stronger valuation and profitability.
- PMART/PMA ESG
Phillip Capital Malaysia offers discretionary portfolio that invests in stocks with high ESG ratings from the F4GBM and F4GBMS Indices, namely PMART and PMA ESG. There are both conventional and Shariah options available. To explore the companies in which both Conventional and Shariah ESG mandates invest, you can refer to the provided link.
- PMART/PMA Blue Chip and Opportunity
Our Blue-Chip portfolios primarily allocate our investments towards companies with large market capitalisations, while the Opportunity portfolios predominantly invest in companies with smaller market capitalisations. We also offer both conventional and Shariah-compliant options to cater to the needs of all investors.
Please click on the link to learn more or email us at cse.my@phillipcapital.com.my if you require any further information.
Disclaimer:
The information contained herein does not constitute an offer, invitation or solicitation to invest in Phillip Capital Management Sdn Bhd (“PCM”). This article has been reviewed and endorsed by the Executive Director (ED) of PCM. This article has not been reviewed by The Securities Commission Malaysia (SC). No part of this document may be circulated or reproduced without prior permission of PCM. This is not a collective investment scheme / unit trust fund. Any investment product or service offered by PCM is not obligations of, deposits in or guaranteed by PCM. Past performance is not necessarily indicative of future returns. Investments are subject to investment risks, including the possible loss of the principal amount invested. Investors should note that the value of the investment may rise as well as decline. If investors are in any doubt about any feature or nature of the investment, they should consult PCM to obtain further information including on the fees and charges involved before investing or seek other professional advice for their specific investment needs or financial situations. Whilst we have taken all reasonable care to ensure that the information contained in this publication is accurate, it does not guarantee the accuracy or completeness of this publication. Any information, opinion and views contained herein are subject to change without notice. We have not given any consideration to and have not made any investigation on your investment objectives, financial situation or your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any persons acting on such information and advice.
