Bursa Malaysia ends lower as tariff concerns weigh on investor sentiment
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 12.11 points or 0.8 per cent to 1,525.40 from Monday's close of 1,537.51. The benchmark index opened 1.45 points lower at 1,536.06
The market breadth was negative, with losers outnumbering gainers 601 to 412, while 498 counters were unchanged, 910 untraded and nine suspended.
Turnover stood at 3.07 billion shares worth RM2.36 billion compared to 2.93 billion units worth RM1.67 billion on Monday.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said investor attention remains focused on the United States-Malaysia tariff negotiations, ahead of the Aug 1 deadline for a proposed 25 per cent import duty on Malaysian goods.
He said the market appears to be factoring in a drawn-out negotiation process, contributing to prevailing risk aversion.
While the Investment, Trade and Industry Ministry's approval of a strategic trade permit for artificial intelligence (AI) chips is a positive move, he said concerns over possible US export controls on AI chip shipments to Malaysia continue to weigh on sentiment, especially in the technology and semiconductor sectors.
"Nonetheless, from a medium- to longer-term perspective, we see the strengthening of governance and compliance standards as a positive structural shift that may enhance Malaysia's competitive positioning within global value chains, potentially serving as a future catalyst for investor confidence," he added.
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