Bursa Malaysia lower at midday on renewed US-China tensions
KUALA LUMPUR: Bursa Malaysia was lower at midday, dragged down by renewed tensions between the United States (US) and China, analysts said.
According to reports, China hit back at US President Donald Trump's claim it had violated the temporary trade agreement between the two countries, while the European Union said it opposed the president's doubling of tariffs on steel and aluminium imports.
At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 4.89 points, 0.32 per cent, to 1,503.46 from last Friday's close of 1,508.35.
The benchmark index, which opened 4.37 points higher at 1,512.72, moved between 1,497.42 and 1,514.12 during the morning session.
In the broader market, decliners thumped gainers 694 to 225, while 373 counters were unchanged, 1,054 untraded and 15 suspended.
Turnover stood at 2.14 billion units worth RM1.14 billion.
Meanwhile, Hong Leong Investment Bank said in a note that following the conclusion of a lacklustre May corporate results season, it expects the benchmark index to remain volatile in June after tumbling 2.1 per cent in May (year-to-date: -8.2 per cent).
This is as investor sentiment has stayed cautious amid continued foreign net outflows coupled with developments in the political landscape ahead of the Sabah state election (due by end 2025).
"Adding to the cautious tone are renewed concerns over a tariff-driven global slowdown and ongoing legal tussles surrounding Trump's trade policies, which could weigh on market confidence and pressure Malaysia's growth and earnings outlook,' it said.
Among the heavyweights, QL Resources fell 11 sen to RM4.39, Axiata slid four sen to RM2.01, Press Metal Aluminium was down nine sen to RM4.95, Petronas Chemicals eased six sen to RM3.36, and Sunway dropped 7 sen to RM4.68.
Among the most active counters, Harvest Miracle Capital, ACE Market debutant ICT Zone Asia, and Permaju Industries were flat at 18 sen, 20 sen and 1.5 sen respectively, while Tanco Holdings increased one sen to RM1.01 and Eco-Shop Marketing slipped two sen to RM1.24.
On the index board, the FBM Emas Index shaved 44.22 points to 11,255.58, the FBMT 100 Index lost 38.95 points to 11,022.05, and the FBM ACE Index fell 65.44 points to 4,485.59.
The FBM Emas Shariah Index slid 54.38 points to 11,201.88, while the FBM 70 Index trimmed 69.27 points to 16,132.23.
Sector-wise, the Financial Services Index weakened 43.21 points to 17,797.32, the Industrial Products and Services Index edged down 2.05 points to 150.60, and the Energy Index eased 8.58 points to 699.46, but the Plantation Index rose 16.80 points to 7,224.65. - Bernama
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