KLCI slips early Wednesday on worries about US tariffs again

KUALA LUMPUR: Blue chips slipped early Wednesday as worries about US tariffs again after US President Donald Trump's top economic adviser, Gary Cohn resigned, sending the US futures lower.

At 9.22am, the KLCI was down 2.53 points or 0.14% to 1,845.84. Turnover was 310.24 million shares valued at RM138.82mil. There were 119 gainers, 337 losers and 228 counters unchanged.

Reuters reported US stock futures fell more than 1% late Tuesday after the resignation of Cohn, fueling fears that the administration would follow through with plans to impose steel and aluminum tariffs, possibly triggering a trade war.

White House officials said the dispute over tariffs contributed to Cohn's decision to resign but was not the only reason.

S&P 500 e-mini futures were down 1.5% in trading for the overnight session. Dow futures were down 1.7%.

On the outlook for Bursa Malaysia, Maybank Investment Bank Research said despite Tuesday’s rebound, the market could be choppy on concerns over potential backlash from the US’ trading partners in relation to Trump’s proposed tariffs.

“Technically, we expect the FBM KLCI to trade between 1,830 and 1,850 today. Downside supports are 1,840 and 1,812,” it said.

On the ringgit, Stephen Innes, head of trading Asia Pacific at OANDA, said it was decision day for the Bank Negara but the market is expecting few if any fireworks. 

Regional currency sentiment received a boost after surprising news that  North Korea is open to denuclearisation if the safety of its regime is guaranteed.  

“The prospect of trade tariffs is raising their ugly head again, but when all is said and done, these tit-for-tat tariffs are not significant enough factor to weigh on the ringgit sentiment let alone derail the buoyant global growth narrative,” he said.

Nestle was the top loser, down 80 sen to RM136.20 after the previous day’s surge. However, Dutch Lady added RM1.36 to RM68.34, Carlsberg 58 sen to RM119.78 and BAT 46 sen higher at RM28.50.

Refiners Hengyuan fell 48 sen to RM9.70 and Petron lost 27 sen to RM9.46.

Glove makers Hartalega fell 24 sen to RM10.82 and Top Glove 13 sen lower RM9.57.

Uchitec and AirAsia fell 10 sen each to RM2.70 and RM4.10 while Southern Steel lost eight sen to RM1.96.

KSSC jumped 12.5 sen to 65 sen while UEM Edgenta and MAHB gained six sen each to RM2.72 and RM8.80.