US tariff jitters drag FBM KLCI lower for second day

KUALA LUMPUR: Bursa Malaysia ended lower for a second straight session on Tuesday, bucking the regional uptrend, as investor sentiment remained cautious amid renewed concerns over US tariffs, analysts said.

AI Brief

The FBM KLCI dropped 7.40 points due to US tariff hikes and regional trade uncertainties.
Banking and consumer stocks saw selling pressure while regional markets mostly rose.
Analysts say the impact may be cushioned and see potential for bargain buying.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) shed 7.40 points, or 0.48 per cent, to 1,530.14 from Monday's close of 1,537.54.

The benchmark index opened 7.85 points lower at 1,529.69 and moved between 1,526.27 and 1,531.14 throughout the day.

Market breadth was negative, with 550 decliners outpacing 399 gainers. A total of 490 counters were unchanged, while 966 were untraded and nine suspended.

Turnover narrowed to 3.06 billion shares worth RM2.20 billion, compared with 3.57 billion shares worth RM2.49 billion on Friday.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the FBM KLCI extended its losses amid heightened volatility in regional trade policy, with selling pressure particularly evident in banking and consumer-linked sectors.

"The domestic equity market remained under pressure following confirmation that Malaysian exports will face a 25 per cent tariff under the United States' latest trade action, one percentage point higher than initially signalled during the 'Liberation Day' announcement.

"While the local benchmark declined, regional markets charted a different course, with most major indices in Asia trading higher on cautious optimism that the US may still be open to negotiation," he told Bernama.

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the tariff situation may not be as severe as perceived and suggested the recent selling could present a bargain-hunting opportunity, with valuations turning more attractive.

"Although the tariffs pose challenges, the impact on Malaysia is cushioned by the fact that regional competitors are also affected, in some cases more significantly.

"As such, we expect the benchmark index to trend within the 1,520-1,550 range for the rest of the week," he said.

Among heavyweights, Maybank and IHH Healthcare each slipped two sen to RM9.70 and RM6.70, respectively. Public Bank gained one sen to RM4.34, Tenaga Nasional added six sen to RM13.86, while CIMB fell 14 sen to RM6.61.

In active trade, NexG rose 1.5 sen to 43.5 sen. Top Glove and Tanco slipped half-a-sen each to 68.5 sen and 89 sen, respectively. Zetrix AI gained two sen to 97 sen, while Supermax climbed 4.5 sen to 63.5 sen.

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