Kuala lumpur: Bursa Malaysia continued its decline at midday as investors evaluated the effects of United States tariffs on major trading partners, amid a mixed performance in regional markets. At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 4.25 points, or 0.28 percent, to 1,533.26 from Monday’s close of 1,537.51. The index opened slightly lower and fluctuated between 1,532.41 and 1,538.56 during the morning session.

According to BERNAMA News Agency, the broader market was in negative territory with decliners outnumbering gainers by 464 to 367, while 477 counters remained unchanged, 1,121 were untraded, and eight were suspended. The market turnover stood at 1.86 billion units worth RM1.04 billion.

Hong Leong Investment Bank Bhd (HLIB) noted in a research report that the FBM KLCI is expected to remain in a consolidation phase as investors consider the broader implications of the US’s renewed tariff rhetoric targeting significant trading partners. The index faced additional pressure from uncertainties surrounding US-Malaysia tariff negotiations, with the possibility of a prolonged process to reduce the 25 percent import duties ahead of the August 1 deadline.

Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, indicated that the local market’s activity might improve in the future, although the effects of the overnight policy rate cut would not be immediately apparent. He predicted that the index would remain within a narrow trading range of 1,535-1,545 for the day.

Among the heavyweights, Maybank, Tenaga Nasional, and CIMB each fell by four sen, while Public Bank and IHH Healthcare also saw minor declines. In terms of active stocks, NexG and Nationgate experienced gains, while Zetrix AI saw a decrease, and Tanco remained unchanged.

Index-wise, the FBM Emas Index, FBMT 100 Index, and FBM Emas Shariah Index all saw reductions, whereas the FBM ACE Index recorded a slight increase. Sectoral performance varied with declines in Financial Services and Energy, a slight increase in Industrial Products and Services, and gains in the Plantation sector.