KUALA LUMPUR (March 5): The FBM KLCI fell 0.82% at midday break today, while steel-related counters succumbed to a threat by U.S. President Donald Trump that none will be exempted from being slapped with his administration’s global steel and aluminium tariffs.

At 12.30pm, the FBM KLCI lost 15.14 points to 1,840.93.

Losers beat gainers by 542 to 139, while 532 counters traded unchanged. Volume was 1.30 billion shares, valued at RM963.33 million.

Top losers included Hengyuan Refining Company Bhd, KESM Industries Bhd, Hong Leong Bank Bhd, Petron Malaysia Refining & Marketing Bhd, Bursa Malaysia Bhd, Petronas Dagangan Bhd, Hartalega Holdings Bhd and Inari Amertron Bhd.

The actives included EA Holdings Bhd, Daya Materials Bhd, Sino Hua-An International Bhd, Sumatec Resources Bhd, UMW Oil & Gas Corp Bhd, PUC Bhd and Diversified Gateway Solutions Bhd.

The gainers included Nestle (M) Bhd, Negri Sembilan Oil Palms Bhd, Oranaper Bhd, APM Automotive Holdings Bhd, Muda Holdings Bhd, Genting Plantations Bhd and Tan Chong Motor Holdings Bhd.

Among the steel-related stocks, decliners included Press Metal Aluminium Holdings, CSC Steel Holdings Bhd, Malaysia Steel Works (KL) Bhd, Southern Steel Bhd and Ann Joo Resources Bhd.

Asian shares stumbled to near three-week lows on Monday, amid fears of a global trade war, while the euro was unsteady in currency markets due to worries an anti-establishment coalition government could emerge from elections in Italy, according to Reuters.

Italian voters delivered a hung parliament on Sunday, flocking to anti-establishment and far-right parties in record numbers and casting the euro zone's third-largest economy into a political gridlock that could take months to clear, Reuters said.

Hong Leong IB Research in a traders’ brief said the impact from recent events such as the Fed Powell's testimony in the Congress and President Trump's steel tariffs episode could put further pressure on global markets, as investors may switch from stocks to bonds.

“The Dow may be capped along the 25,000 psychological level over the near term.

“Similarly, stocks on the local front are likely to extend the sideways consolidation phase, on the back of uncertain actions from Donald Trump that may turn into a trade war.

“Moreover, investors may continue their profit-taking activities on steel and aluminium producers. The KLCI is likely to range between 1,850-1,865,” the research house said.