Semiconductor shares slide as Trump announces 100% tariff on chip imports
As trading commenced on the Malaysian stock market, semiconductor-related companies were on the backfoot, including Frontken down seven sen to RM4.29, Pentamaster diving 14 sen to RM3.60 and Unisem shedding six sen to RM2.31.
The sector decline was at odds with the country's blue-chip FBM KLCI, which hovered in slightly positive territory at 1,540.4 points minutes into trading.
Malacca Securities said investors are expected to stay cautious following US President Donald Trump's announcement of the semiconductor tariff. This is depite an overnight recovery on Wall Street, coupled with a US rate cut expectation in September.
On sectors, the research firm said the construction and utilities sectors should be benefiting from the data centre developments and mega infrastructure projects in the country.
It added that the recent overnight policy rate cut may boost the interest for the REIT and property sectors, such as Sunway REIT, IGB REIT and EcoWorld.
In healthcare, Malacca Securities favours KPJ Healthcare due to its brownfield expansion and opening of new hospitals.
"KPJ has experienced a breakout continuation pattern, with a consensus target price of RM2.98," it said in a note.
At 9.19am, the most actively traded counters on Bursa Malaysia were Pharmaniaga down one sne to 17.5 sen, TWL flat at 2.5 sen and SNS Network down one sne to 51 sen.
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