Bursa Malaysia ends higher as US-China tariff truce lifts sentiment

KUALA LUMPUR: Bursa Malaysia extended its upward momentum to close higher on Tuesday, boosted by news of the United States' (US) decision to extend its 90-day tariff truce with China until Nov 10, which lifted market sentiment.

AI Brief

Malaysia's FBM KLCI rose 4.66 points, supported by positive regional sentiment and a US-China tariff truce extension.
Investor confidence grew ahead of key US inflation data and a planned Trump-Putin meeting on Ukraine.
Market breadth was positive, with more gainers than losers, and trading volume slightly lower than the previous day.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.66 points, or 0.30 per cent, to close at 1,567.90 from yesterday's close of 1,563.24.

The benchmark index opened 1.41 points lower at 1,561.83, marking its day's low, and subsequently hit a high of 1,572.97 in early trade.

The broader market was positive, with advancers leading decliners 513 to 477, while 507 counters were unchanged, 1,024 untraded and eight suspended.

Turnover edged down to 2.53 billion units worth RM2.15 billion from 2.54 billion units worth RM2.20 billion yesterday.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said major Asian indices also trended positively as investors welcomed news that the US and China had agreed on Monday to extend their tariff truce by 90 days, avoiding steep duties that could have disrupted trade flows.

"The deal maintains existing US tariffs at 30 per cent and Chinese tariffs at 10 per cent, providing additional time for negotiations and lifting investor sentiment across the region," he told Bernama.

Meanwhile, he said market sentiment was further boosted by optimism over easing geopolitical tensions, as US President Donald Trump and Russian President Vladimir Putin are set to meet in Alaska on Friday to discuss the war in Ukraine.

Back home, Thong said the benchmark index closed at 1,567.90, edging above the key 1,565 resistance, and a clear breakout above this threshold will set the stage for further gains.

"As such, our weekly FBM KLCI target remains at the 1,550-1,580 range," he added.

Traders are also awaiting key US inflation data, which could signal the Federal Reserve's next policy move.

The US consumer price index (CPI) report, due for release tonight, is expected to show an increase, with consensus estimates placing headline CPI at 2.8 per cent and core CPI at 3.0 per cent for July -- up from 2.7 per cent and 2.9 per cent, respectively, in June.

Among the heavyweights, Maybank added 6.0 sen to RM9.71, CIMB perked up 7.0 sen to RM7.01, while Tenaga Nasional eased 8.0 sen to RM13.58, IHH Healthcare slipped 14 sen to RM6.82, and Public Bank was flat at RM4.40.

Of the most active counters, Classita rose half-a-sen to 9.5 sen, NexG gained 2.5 sen to 40 sen, while Zetrix AI decreased 1.5 sen to 88 sen, Tanco trimmed by 2.0 sen to 72.5 sen, and TWL was flat at 2.5 sen.