KUALA LUMPUR: Gains in Axiata Group Bhd
, Tenaga Nasional Bhd (TNB) and Malayan Banking Bhd (Maybank) helped Bursa Malaysia’s main index pare earlier losses, ending marginally lower amid the ongoing concerns about US inflation and President Donald Trump’s reciprocal tariff threat.
At 5pm, the FBM KLCI fell 0.96 point to 1,589.95 compared with last Friday’s close of 1,590.91. The benchmark index opened 3.26 points lower at 1,587.65 and moved between 1,584.20 and 1,590.49 during the session.
The broader market remained negative, with losers outpacing gainers 589 to 366, while 503 counters were unchanged, 872 untraded and 22 suspended.
Turnover improved to three billion units worth RM1.85bil from 2.93 billion units valued at RM2.22bil last Friday.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng told Bernama that investors have shifted their attention to smaller-cap stocks, particularly in healthcare and telecommunications, with profit-taking in technology shares.
He noted that short-term sentiment remained cautious and is set to be heavily influenced by external factors, including the prolonged US-China trade war.
“As such, we anticipate the benchmark index to trend within the 1,580 to 1,600 range, representing the key support and resistance levels,” he said.
Leng added that despite the volatility, optimism in China’s artificial intelligence sector, whereby firms like DeepSeek continue to exhibit strength, managed to reinforce regional confidence, supporting gains in most neighbouring markets.
Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said although Malaysia is not a key aluminium exporter, the new 25% US tariff could have indirect consequences, particularly for the technology sector.
“Higher tariffs may dampen semiconductor demand and increase production costs, impacting Malaysian firms that are integrated into global supply chains.
“This was reflected in yesterday’s market movements, where the Bursa Malaysia Technology Index led losses, while aluminium-related stocks within the FBM KLCI demonstrated resilience,” he noted.
Beyond metals, investors are now bracing for the possibility of “reciprocal” tariffs, which could be announced sooner- than-expected, within this week.
The Department of Statistics will release the economic data for the fourth-quarter of 2024 on Friday, alongside full-year gross domestic product figures.
“However, we expect investors to remain more focused on Trump’s evolving trade measures than on domestic economic data.
“Until greater clarity emerges, market volatility is likely to persist,” he noted.
Axiata led the gainers among the heavyweights, gaining seven sen to RM2.28, followed by TNBd, which rose 10 sen to RM13.84, while Maybank and Sime Darby Bhd added four sen each to RM10.46 and RM2.25, respectively.
In contrast, SD Guthrie Bhd dropped 11 sen to RM4.80, MISC Bhd lost 15 sen to RM7.23 and Gamuda Bhd was eight sen weaker at RM4.48.
Among the active counters, Borneo Oil Bhd and TWL Holdings Bhd were flat at one sen and 2.5 sen, respectively, while newly-listed Colform Group Bhd gained three sen to 39 sen, Capital A Bhd lost 6.5 sen to 84.5 sen and Asia Poly Holdings Bhd added two sen to 14.5 sen.
