Bursa Malaysia opens higher on bargain hunting after US delays tariffs

KUALA LUMPUR: Bursa Malaysia opened higher today as bargain hunting emerged amid news on delayed import tariffs hike proposed by the United States (US) on Mexico and Canada on Monday.

At 9.05 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) increased 4.75 points to 1,558.38 against Monday's close of 1,553.63.

The benchmark index opened 3.40 points higher to 1,557.03.

On the broader market, gainers led decliners 172 to 106, while 228 counters were unchanged, 1,798 untraded, and 14 suspended.

Turnover stood at 120.50 million shares worth RM67.91 million.

According to news reports, although the US agreed to a 30-day pause in return for concessions on border and crime enforcement with its two neighbouring countries, tariffs on China are still due to take effect.

US President Donald Trump delayed tariffs on Mexico after his orders to levy tariffs on three countries sparked a global scramble to safe-haven assets earlier on Monday.

Meanwhile, Malacca Securities Sdn Bhd said that the imposition of an additional 10 per cent tariff (on top of the existing 50 per cent) on China's rubber medical and surgical glove exports to the US is expected to boost sentiment towards local glove counters.

"Besides, given the recent pullback in the construction sector, we believe the significant discount in share prices might present bargain hunting opportunities for the construction counters, supported by the Johor-Singapore Special Economic Zone initiatives and the ongoing data centre developments in the country," it said in a note.

On a technical perspective, the benchmark index's resistance level is anticipated to be around 1,568-1,573, while support is spotted at 1,533-1,538, the brokerage firm added.

Among the heavyweights, CIMB and Tenaga Nasional perked up 8.0 sen each to RM8.08 and RM13.66 respectively, Press Metal Aluminium and Gamuda rose 5.0 sen each to RM4.95 and RM4.19 respectively, and Public Bank added 2.0 sen to RM4.34.

Harvest Miracle Capital led the list of the most active counters, adding 2.0 sen to 20.5 sen, followed by Oriental Kopi which added 1.0 sen to 86.5.

Silver Ridge was flat at 59 sen, YTL Power International gained 2.0 sen to RM3.07, and Velesto Energy remained flat at 19 sen.

On the index board, the FBM Emas Index advanced 37.77 points to 11,903.83, the FBMT 100 Index climbed 39.93 points to 11,598.54, and the FBM Emas Shariah Index increased 32.48 points to 11,754.31.

The FBM ACE Index gained 26.10 points to 5,215.27 and the FBM 70 Index garnered 77.84 points to 17,665.46

By sector, the Financial Services Index expanded 44.43 points to 18,884.26, the Industrial Products and Services Index rose 0.67 of-a-point to 164.40, and the Energy Index firmed 0.65 of-a-point to 816.77, while the Plantation Index shed 19.66 points to 7,326.18.

-- BERNAMA

Read the latest news here