KUALA LUMPUR (April 5): CIMB IB Research has maintained its end-2018F FBM KLCI target of 1,800 points and said the the sectors that could be affected by US-China trade wars due to recently proposed import tariffs are semiconductor, building materials and ports in Malaysia.
The US has proposed 25% import tariffs on 1,333 Chinese goods.
In a note April 4, the research house said many of the U.S. tariffs target the Chinese aerospace, technology and machinery industries.
It said others target medical equipment, medicine and educational materials, such as bookbinding equipment.
CIMB Research said the list also includes some consumer goods such as dishwashers, televisions and automobile parts, but does not include retail mainstays such as shoes, clothing, mobile phones and furniture
“Channel checks reveal that most companies under our coverage expect minimal impact on their business from the tariffs move by US.
“Maintain our end-2018F KLCI target of 1,880 points and Dialog Group Bhd, Axiata Group Bhd and Westports Holdings Bhd as our top three picks,” it said.