Kuala Lumpur: Bursa Malaysia remained in negative territory at midday as investors prepared for a potential escalation in the global trade war, prompted by the United States’ confirmation of tariff impositions on Mexico, Canada, and China, effective today. At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) decreased 13.83 points, or 0.88 percent, to 1,557.56, from yesterday’s close of 1,571.39. The benchmark index opened 9.69 points lower at 1,561.70.
According to BERNAMA News Agency, the broader market was also downbeat with decliners significantly outnumbering advancers 1,025 to 120, with 262 counters unchanged, 924 untraded, and six suspended. Turnover stood at 2.57 billion shares worth RM1.61 billion.
Malacca Securities Sdn Bhd noted that traders will continue to monitor the S and P Global Services Purchasing Managers’ Index, the European Central Bank interest rate decision, and China’s trade balance this week. Despite Pantech Global settling lower than its initial offering price yesterday, there remains optimism due to its strong fundamentals, extensive global reach, and decent market share. The current sell down is attributed to weak market sentiment, with expectations that the share price may gradually trade towards its fair value over the long term.
The brokerage firm also mentioned that given the ongoing market weakness, traders may consider banking, utilities, and REITs due to their stable earnings and consistent dividends. ITMAX System and TIME dotCom were highlighted for their resilient business models.
Among the heavyweights, Public Bank added 1.0 sen to RM4.57, while Maybank eased 10 sen to RM10.58, CIMB gave up 2.0 sen to RM7.98, Tenaga Nasional fell 10 sen to RM13.60, and IHH Healthcare eased 1.0 sen to RM7.41. As for the actives, NationGate gained 18 sen to RM1.48, Ingenieur Gudang was flat at 3.5 sen, Genting Malaysia erased 10.0 sen to RM1.80, Velesto Energy edged down 1.5 sen to 15.5 sen, and MY E.G. Services shrank 3.0 sen to 90.5 sen.
On the index board, the FBM Emas Index dipped 150.91 points to 11,560.98, the FBMT 100 Index slipped 132.20 points to 11,347.17, the FBM 70 Index ticked down 316.10 points to 16,323.28, the FBM Emas Shariah Index lost 171.08 points to 11,176.95, and the FBM ACE Index depreciated 160.61 points to 4,531.46. By sector, the Financial Services Index narrowed 100.47 points to 19,283.56, the Plantation Index shed 28.36 points to 7,491.33, the Energy Index trimmed 20.52 points to 735.03, and the Industrial Products and Services Index inched down 2.36 points to 154.17.