KUALA LUMPUR (June 23): The FBM KLCI pared losses for a 4.2-point or 0.28% drop to 1,507.04 at market close today after US President Donald Trump said the US-China trade deal was "fully intact” in an effort to clarify earlier confusing statements from the White House on the status of the agreement.

At 5pm, the KLCI pared losses after falling to its intraday low at 1,492.32 in line with major global stock indices, which however erased losses when markets closed. 

Japan’s Nikkei 225 ended 0.5% higher while South Korea’s Kospi finished up 0.21%. In China, the Hang Seng rose 1.62% while the Shanghai Stock Exchange Composite climbed 0.18%. 

In Malaysia, Malacca Securities Sdn Bhd head of research Loui Low told theedgemarkets.com the KLCI started with a big drop this morning, mirroring regional sentiment which turned negative after White House trade adviser Peter Navarro said the trade deal with China was “over”. 

It was reported that Navarro had linked the breakdown in part to Washington's anger over Beijing not sounding the alarm earlier about the coronavirus outbreak.

It was reported that Navarro's statement prompted a selloff across equities markets but sentiment quickly recovered when Navarro, an outspoken critic of China, said his remarks had been taken out of context.

It was reported that Trump also soothed nerves when he tweeted: "China trade deal is fully intact. Hopefully they will continue to live up to the terms of the agreement.”

Across Bursa today, 8.75 billion shares worth RM2.98 billion were traded. Low noted that share prices of electronics manufacturing service providers closed higher today.

The list includes ATA IMS Bhd, which rose eight sen or 6.56% to RM1.30, while SKP Resources Bhd ended up three sen or 2.22% at RM1.38.

“This is due to reopening of the economy. Overall, they are moving towards reopening of activities, as their stocks (share prices) were most battered down during the movement control order period. It’s a catch-up play,” Low said.