Kuala Lumpur: Bursa Malaysia experienced a downturn at midday, influenced by renewed trade tensions between the United States and China, analysts reported. The market was affected by the latest developments as China reacted to US President Donald Trump's accusations of breaching a temporary trade agreement between the two nations. Additionally, the European Union expressed disapproval of the US president's decision to double tariffs on steel and aluminium imports.
According to BERNAMA News Agency, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 4.89 points, or 0.32 per cent, reaching 1,503.46 compared to the previous Friday's close of 1,508.35. The index, which started the day 4.37 points higher at 1,512.72, fluctuated between 1,497.42 and 1,514.12 during the morning session.
In the broader market, the number of declining stocks surpassed gainers 694 to 225, with 373 counters remaining unchanged, 1,054 untraded, and 15 suspended. The turnover amounted to 2.14 billion units valued at RM1.14 billion.
Hong Leong Investment Bank noted that after a subdued May corporate results season, the benchmark index is expected to face volatility in June, having decreased by 2.1 per cent in May (year-to-date: -8.2 per cent). The investor sentiment remains cautious amid ongoing foreign net outflows and political developments ahead of the Sabah state election, which is due by the end of 2025.
The bank further stated that renewed concerns over a tariff-driven global slowdown and ongoing legal disputes related to Trump's trade policies could negatively impact market confidence and put pressure on Malaysia's growth and earnings outlook.
Among the leading stocks, QL Resources dropped 11 sen to RM4.39, Axiata decreased by four sen to RM2.01, Press Metal Aluminium fell nine sen to RM4.95, Petronas Chemicals eased six sen to RM3.36, and Sunway declined by seven sen to RM4.68.
In terms of market activity, Harvest Miracle Capital, ACE Market debutant ICT Zone Asia, and Permaju Industries remained stable at 18 sen, 20 sen, and 1.5 sen respectively. Tanco Holdings increased by one sen to RM1.01, while Eco-Shop Marketing slipped two sen to RM1.24.
On the index board, the FBM Emas Index decreased by 44.22 points to 11,255.58, the FBMT 100 Index dropped 38.95 points to 11,022.05, and the FBM ACE Index declined by 65.44 points to 4,485.59. The FBM Emas Shariah Index slid by 54.38 points to 11,201.88, whereas the FBM 70 Index reduced by 69.27 points to 16,132.23.
In the sectoral indices, the Financial Services Index weakened by 43.21 points to 17,797.32, the Industrial Products and Services Index edged down by 2.05 points to 150.60, and the Energy Index eased by 8.58 points to 699.46. However, the Plantation Index rose by 16.80 points to 7,224.65.