KUALA LUMPUR (Sept 18): The FBM KLCI got off to a poor start upon resuming trade this morning after the extended weekend and fell 0.57% in line with the global markets that came under pressure after US President Donald Trump slapped further tariffs on China.

At 9.05am, the FBM KLCI fell 10.27 points to 1,793.49.

The top losers included Top Glove Corp Bhd, Carlsberg Brewery Malaysia Bhd, Public Bank Bhd, Padini Holdings Bhd, Fraser & Neave Holdings Bdh, KSM Industries Bhd, Malaysia Airports Holdings Bhd, IOI Corp Bhd and CIMB Group Holdings Bhd.

U.S. stock futures dropped and Asian shares are expected to come under renewed pressure on Tuesday after Trump said he will impose 10 percent U.S. tariffs on about $200 billion worth of Chinese imports, according to Reuters.

While he spared smart watches from Apple and some other consumer products such as bicycle helmets, he warned that if China takes retaliatory action he we will pursue another tariffs on approximately $267 billion of goods, it said.

Hong Leong IB Research in a traders’ brief said it expects the trade tensions to persist over the near term as President Trump remains stern and bold on his statements on the trade issues.

“Hence, we anticipate that Wall Street could go into a consolidation phase with heightened volatility moving forward.

“Also, corporates that have heavy business exposure in China may get hit should there be any further implementations of trade tariffs,” it said.

On the local market, it said negative sentiment from Wall Street and the trade concerns may spillover towards stocks on the local front and the FBM KLCI may continue to trade within the range between 1,777-1,828.

“Nevertheless, the positive inflows over the past two trading days may cushion the downside risk over the near term.

“Also, traders may focus on export-oriented and O&G related stocks amid weaker ringgit tone and firmer crude oil prices,” it said.