Thursday 28 Mar 2024
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KUALA LUMPUR (May 31): The FBM KLCI pared some of its gains at the midday break as regional markets were rattled by escalating tariffs conflicts involving the United States against China and Mexico, respectively.

At 12.30pm, the FBM KLCI was up 7.17 points to 1,643.67. The index had earlier risen to a high of 1,648.69.

Losers led gainers by 289 to 242, while 537 counters traded unchanged. Volume was 1.27 billion shares valued at RM1.12 billion.

The top gainers included Heineken Malaysia Bhd, Bursa Malaysia Bhd, Petronas Dagangan Bhd, Hong Leong Bank Bhd, Petronas Gas Bhd, Perusahaan Sadur Timah Malaysia (Perstima) Bhd, Malaysia Airports Holdings Bhd, Genting Plantations Bhd and Tenaga Nasional Bhd.

The actives included Telekom Malaysia Bhd, Dayang Enterprise Holdings Bhd, Vortex Consolidated Bhd and Malaysia-listed Hang Seng Index-linked put warrants.

The losers included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd, Petron Malaysia Refining & Marketing Bhd, Ajinomoto (M) Bhd, Kuala Lumpur Kepong Bhd, KESM Industries Bhd, APM Automotive Holdings Bhd and Wang-Zheng Bhd.

Stocks fell in Asia along with Treasury yields, though the magnitude of the declines eased as trading progressed, after Beijing said it was ready to restrict the sale of rare earths to US if needed and President Donald Trump threatened to place escalating import tariffs on Mexico, according to Bloomberg.

The new front with Mexico and the threat of retaliation from China sent 10-year Treasury yields to fresh 20-month lows. Japanese shares retreated, while shares in Korea, Hong Kong and China fluctuated. Futures on the S&P 500 Index headed for their worst week since the global market rout in December. The latest move by the self-described Tariff Man would put 5% American duties on all Mexican imports on June 10, rising to 25% in October unless Mexico halts "illegal migrants" heading to the US. The tweet sent the Mexican peso down about 2%. The yen advanced and crude oil slid, it said.

Affin Hwang Capital Research said the FBM KLCI Index rose 12.83 points or 0.79% in yesterday's trading session, closing at 1,636.50.

"The index has been closing in the green for four consecutive days now, gaining about 35 points, posting a solid performance throughout the week.

"Prices have broken through the 1,615 immediate resistance and now look towards the 1,645 level as the next potential stalling area.

"The index is likely to resume its movement lower," it said.

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