KLCI dips 0.33% in line with regional slide

-A +A

KUALA LUMPUR (May 6): The FBM KLCI fell 0.33% in early trade this morning, tracking the slide at regional markets after US Preident Donald Trump said he will increase tariffs on US$200 billion of Chinese imports to 25% from 10% on Friday.

At 9.10am, the FBM KLCI fell 5.46 points to 1,631.84.

The top losers included Tasek Corp Bhd. Carlsberg Brewery Malaysia Bhd, Petronas Dagangan Bhd, Malaysia Airports Holdings Bhd, Public Bank Bhd, Hengyuan Refining Company Bhd, Pentamaster Corp Bhd, Allianz Malaysia Bhd, Tenaga Nasional Bhd and Petron Malaysia Refining & Marketing Bhd.

Asian equities tumbled, oil prices plunged and the safe-haven yen strengthened early on Monday as trade negotiations between China and the United States deteriorated suddenly, reversing apparent progress made in recent months, according to Reuters.

U.S. President Donald Trump sharply escalated trade tensions between the world's two largest economies with tweeted comments on Sunday that talks toward a trade deal with China were proceeding "too slowly", and that he would raise tariffs on $200 billion of goods to 25 percent on Friday from 10 percent, it said.

Hong Leong IB Research said in the US, equities are likely to trend lower over the near term following the statement from Donald Trump, regarding the imposition of additional tariffs (increase to 25% from 10%) on the US$200 billion of Chinese goods, which will be implemented by Friday.

“Furthermore, President Trump threatened to impose 25% tariffs on additional US$ 325 billion Chinese goods. At this juncture, the Dow could retrace towards the support around 26,000-26,180.

“On the local bourse, we opine that traders may stay on the side lines ahead of the MPC meeting of BNM and the FBM KLCI’s upside would be limited around 1,658-1,666.

“Also, tracking the recent news from the US, Donald Trump commented over the weekend that the tariffs on US$200 billion of Chinese products will increase to 25% on Friday could dampen the sentiment on Bursa Malaysia.

“Nevertheless, trading interest may persist amongst construction and building material segments as volumes were building up in the past weeks on the back of the revival of ECRL and Bandar Malaysia,” it said.