Thursday 28 Mar 2024
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KUALA LUMPUR (March 23): The FBM KLCI pared some of its losses at mid-morning, but still remained 0.73% down, in line with the fall at most regional markets that were shaken by the prospect of an international trade war.

At 10am, the FBM KLCI was down 13.55 points to 1,863.32. The index had earlier fallen to a low of 1,857.86.

Losers thumped gainers by 659 to 93, while 230 counters traded unchanged. Volume was 611.22 million shares valued at RM315.72 million.

The losers included Fraser & Neave Holdings Bhd, Panasonic Manufacturing Malaysia Bhd, Hong Leong Bank Bhd, Petronas Dagangan Bhd, Hong Leong Financial Gainers, Ajinomoto (M) Bhd, KESM Industries Bhd and Petronas Gas Bhd.

The actives include Sapura Energy Bhd, AirAsia X Bhd, Priceworth International Bhd and P.A. Resources Bhd.

The gainers included Dutch Lady Milk Industries Bhd and Hartalega Holdings Bhd.

Stock markets slid and perceived havens such as government bonds and the yen gained on Friday as investors rushed to safety after U.S. President Donald Trump announced long-promised tariffs on Chinese goods, stoking fears of a global trade war, according to Reuters.

Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period, Reuters said.

Hong Leong IB Research said that in the US, the huge volatility may persist over the near term on the resumption of the trade war tensions among investors.

“Also, traders are expecting China to react with a retaliation measures to Trump's tariffs. The full list of tariffs will be released within the next two weeks, this may curtail the trading interest and traders are likely to trade on a cautious tone. The next support on the Dow will be pegged around 23,350.

“Similarly, the negative sentiment could spillover towards Malaysia's stockmarket on the broader market, which small caps and lower liners could be seen as the target for reduction of equities’ exposure under this cautious environment.

“Nevertheless, as market is awaiting announcement of the GE14, downside on the heavyweights could be well cushioned on the back of buying support from local institution,” it said.

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