KUALA LUMPUR: Investors across Asia reduced their exposure to riskier assets such as equities as the US-China trade war gathered momentum on Friday while Bursa Malaysia was also not spared from the fallout.
At 5pm, the FBM KLCI was down 11.65 points or 0.62% to 1,865.22. Turnover was 2.09 billion shares valued to RM2.15bil. Decliners beat advancers one to four with 827 losers to 190 advancers while 320 counters were unchanged.
Japan's Nikkei 225 lost 4.5%, Singapore's STI was down 2% while China's Shanghai Composite Index tumbled 3.6% and the Hang Seng Index closed 2.5% lower.
More than 400 mainland China stocks plunged by the maximum allowed 10%, led by tech and materials firms targeted or seen as being most affected by the US tariffs, Reuters reported.
China's move to throw down the gauntlet in the ensuing trade war with the US will leave Malaysia's highly open economy vulnerable as exports account for 71% of the country's gross domestic product (GDP).
While heavy foreign positioning in government bonds shows that the exposure to capital outflows is high, Nomura Global Markets Research sees US trade protectionism or a China slowdown as bigger risks.
At Bursa, Hong Leong Bank fell 50 sen to RM18.72 and erased 1.95 points from the KLCI, CIMB and RHB Bank fell eight sen each to RM7.21 and RM5.32, Maybank and Public Bank four sen each to RM10.50 and RM24.
Genting Malaysia lost 14 sen to RM5.10 and wiped out 1.49 points from the KLCI, Genting Bhd
12 sen to RM8.90, Tenaga two sen lower at RM15.76. Hap Seng gave up 22 sen to RM9.66 whilke MISC lost five sen to RM7.15.
As for telcos, Telekom lost nine sen to RM5.41, Maxis fell eight sen to RM5.81 and Axiata seven sen to RM5.43, Digi four sen to RM4.67.
Crude palm oil for third month delivery fell RM26 to RM2,424 per tonne. Among the plantations, KL Kepong and PPB Group were flat at RM25.50 and RM18.92 while IOI Corp gained three sen to RM4.78.
Sime Plantation rose four sen to RM5.64, Sime Darby lost seven sen to RM2.55 and Sime Property four sen lower at RM1.38.
US light crude oil rose 42 cents to US$64.72 and Brent gained 23 cents to US$69.14. Refiners were among the top losers with Hengyuan down 43 sen to RM7.80 and Petron 35 sen lower at RM9.04. Yinson lost 26 sen to RM3.74 while LC Titan was down 23 sen to RM5.99.
Petronas Gas lost 12 sen to RM17.88, Petronas Dagangan lost 10 sen to RM24.70 and Petronas Chemicals three sen lower at RM8.18.
Nestle jumped RM8.20 to RM150 and powered the KLCI up 3.45 points while Heineken gained 62 sen to RM21.32 and BAT 16 sen higher at RM28.30.
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