Sime Darby Bhd tops KLCI decliners after Trump's tariff warning

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KUALA LUMPUR (May 6): Sime Darby Bhd and Dialog Group Bhd were the top and second-largest percentage decliners respectively among FBM KLCI's 30 stocks amid broader market losses, after US President Donald Trump said he would raise US tariffs on Chinese goods this week.

At 3:30pm today, Sime Darby Bhd fell nine sen or 3.83% to RM2.26, while Dialog slipped 11 sen or 3.42% to RM3.11. 

In the broader market, the KLCI fell 11.93 points or 0.73% at 4:03pm to 1,625.37. In China, the Shanghai Stock Exchange Composite closed down 171.87 points or 5.58% at 2,906.46.

Earlier, Reuters reported global financial markets reeled on Monday, after Trump unexpectedly jacked up pressure on China to reach a trade deal in the midst of negotiations, saying he would hike US tariffs on Chinese goods this week. Chinese shares plunged more than 6%, while US stock market futures fell 1.6%. Oil prices sank and the Chinese yuan weakened sharply.

It was reported that he would raise tariffs on US$200 billion of Chinese goods to 25 percent on Friday from 10 percent. It was reported that he also said he would target a further US$325 billion of Chinese goods with 25 percent tariffs "shortly".

In Malaysia, Hong Leong Investment Bank Bhd said in a note today that Trump's comment could dampen share sentiment on Bursa Malaysia. 

"Nevertheless, trading interest may persist among construction and building material segments, as volumes were building up in the past weeks on the back of the revival of ECRL (East Coast Rail Link) and Bandar Malaysia," Hong Leong said.