Equity market poised for uptrend amid easing tariff tensions, narrowing rate spr
KUALA LUMPUR, Jan 16 — The equity market is poised for upward momentum as the country's gross domestic product growth is expected to exceed 4% this year, coupled with receding US tariff tensions and a narrowing spread between the US federal funds rate and overnight policy rate.
Analysts attribute the positive outlook to multiple factors converging simultaneously.
The anticipated GDP growth above 4% provides a fundamental economic foundation for market gains.
Reduced US tariff tensions are easing trade-related uncertainties that previously weighed on investor sentiment.
The narrowing spread between the US FFR and Malaysia's OPR reduces pressure on capital outflows and supports local currency stability.
Market participants have been monitoring these developments closely throughout the quarter.
Previous tariff tensions had created volatility in regional markets throughout 2025.
The interest rate differential has been a key factor in foreign investment decisions for emerging markets.
Economic indicators suggest the current conditions may sustain through the first half of the year.
Investors are advised to monitor upcoming economic data releases and central bank announcements for further direction.