BURSA MALAYSIA ENDS MARGINALLY LOWER ON CONCERNS OVER TRUMP'S TARIFFS

KUALA LUMPUR, Feb 10 (Bernama) -- Gains in Axiata, Tenaga Nasional, and 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 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 0.96 of-a-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 3.0 billion units worth RM1.85 billion from 2.93 billion units valued at RM2.22 billion on Friday. 

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said investors have shifted their attention to smaller-cap stocks, particularly in the healthcare and telecommunication stocks, with profit-taking in technology stocks.

He noted that short-term sentiment remained cautious and 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 1,580-1,600 range, representing the key support and resistance levels,” he said, adding despite the volatility, optimism in China's artificial intelligence (AI) 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 per cent US tariffs 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 today’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, this week.

Back home, the Department of Statistics Malaysia will release the fourth-quarter 2024 economic data this Friday, alongside full-year GDP 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 Tenaga Nasional, which rose 10 sen to RM13.84, while Maybank and Sime Darby added four sen each to RM10.46 and RM2.25 respectively.

In contrast, SD Guthrie dropped 11 sen to RM4.80, MISC lost 15 sen to RM7.23, and Gamuda was eight sen weaker at RM4.48.

Among the active counters, Borneo Oil and TWL were flat at one sen and 2.5 sen, respectively, while newly-listed Colform Group perked up 3.0 sen to 39 sen, Capital A lost 6.5 sen to 84.5 sen, and Asia Poly added 2.0 sen to 14.5 sen.

On the index board, the FBM Emas Index shed 25.52 points to 12,124.01, the FBMT 100 Index slid 22.95 points to 11,817.11, and the FBM Emas Shariah Index dipped 51.58 points to 11,934.06.

The FBM ACE Index erased 29.56 points to 5,230.79 and the FBM 70 Index fell 97 points to 17,936.53.

Sector-wise, the Financial Services Index rose 25.67 points to 19,259.11, while the Energy Index slid 1.07 points to 825.37, the Industrial Products and Services Index eased 0.40 of-a-point to 166.11, and the Plantation Index declined 53.16 points to 7,400.74.

The Main Market volume was slightly higher at 1.38 billion units worth RM1.51 billion from 1.37 billion units valued at RM1.94 billion last Friday.

Warrants turnover decreased to 930.27 million units worth RM116.54 million against 1.03 billion units worth RM113.20 million previously.

The ACE Market volume swelled to 688.14 million units valued at RM222.62 million versus 527.66 million units valued at RM163.86 million on Friday.

Consumer products and services counters accounted for 196.40 million shares traded on the Main Market, industrial products and services (452.39 million), construction (72.73 million), technology (130.33 million), SPAC (nil), financial services (54.26 million), property (208.66 million), plantation (14.13 million), REITs (8.25 million), closed/fund (nil), energy (124.53 million), healthcare (42.46 million), telecommunications and media (20.92 million), transportation and logistics (7.84 million), utilities (51.06 million), and business trusts (75,800).

-- BERNAMA