Bursa remains subdued as regional markets stabilise on tariff hopes
At 12.30pm, the FBM KLCI was down 7.59 points to 1,529.95 as investors sold down shares following a surprise increase in the tariff rate following months of negotiations.
The retreat on the market was broad-based with the declining issues beating advancers at a ratio of 1.75-to-1.
Volume was 2.01 billion shares changing hands for RM1.09bil.
Asian markets reversed earlier losses as US President Donald Trump said the tariff rates were "not 100% firm" ahead of the Aug 1 implementation date.
Japan's Nikkei turne dhigher, rising 0.17% to 39,655 while South Korea's Kospi gained 1.42% to 3,102.
Chinese mainland markets also improved - the Shanghai composite index climbed 1.07% to 2,095 while the blue-chip CSI300 added 0.74% to 3,994.
Hong Kong's Hang Seng gained 0.78% to 24,073.
On Bursa Malaysia, the price slump was led by Press Metal down 16 sen to Rm5.13, CIMB dropping 10 sen to RM6.65, MISC falling seven sen to RM7.55 and Telekom shedding 15 sen to RM6.65.
Nestle rose 84 sen to RM77.94 as investors shifted their portfolios to consumer stocks.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
5 minutes ago
- The Star
Mistral in talks with VC firms, MGX to raise funds at $10 billion valuation, FT reports
A message reading "AI artificial intelligence", a keyboard, and robot hands are seen in this illustration taken January 27, 2025. REUTERS/Dado Ruvic/Illustration/ File Photo (Reuters) -French artificial intelligence startup Mistral is in talks with investors, venture capital firms and Abu Dhabi's MGX to raise $1 billion at a valuation of $10 billion, the Financial Times reported on Friday, citing people familiar with the matter. The company launched in June Europe's first AI reasoning model, which uses logical thinking to create a response, as it tries to keep pace with American and Chinese rivals at the forefront of AI development. The funding would accelerate the commercial rollout of Mistral's Le Chat chatbot and support continued development of its large language models, the report said. MGX and Mistral did not immediately respond to Reuters requests for comment. The startup raised 600 million euros in a Series B funding round that valued the company at 5.8 billion euros last year. Industry observers consider Mistral as Europe's best-positioned AI company to rival Silicon Valley leaders, though the French firm has yet to achieve comparable market traction or revenue scale. Mistral counts Nvidia, Andreessen Horowitz and Lightspeed Venture Partners among its investors. (Reporting by Akash Sriram in Bengaluru; Editing by Alan Barona)
The Sun
35 minutes ago
- The Sun
Trump fires US labor official over data
WASHINGTON/NEW YORK: President Donald Trump dismissed a senior Labor Department official on Friday, accusing her of manipulating jobs data without evidence. The move intensified worries about the reliability of federal economic reports. In a separate development, Federal Reserve Governor Adriana Kugler unexpectedly announced her resignation, offering Trump an earlier-than-expected opportunity to reshape the central bank's leadership. The twin announcements rattled markets, with the S&P 500 dropping 1.6%, its steepest fall in over two months. Trump targeted Erika McEntarfer, a Biden appointee, claiming she falsified employment figures. No proof supports his allegations against the Bureau of Labor Statistics (BLS), which produces key economic indicators like jobs and inflation data. A BLS representative declined to comment. The July jobs report showed only 73,000 new positions, with downward revisions erasing 258,000 previously reported jobs for May and June. 'We need accurate Jobs Numbers,' Trump posted on Truth Social, ordering McEntarfer's immediate replacement. A Trump administration official, speaking anonymously, cited dissatisfaction with recent data revisions and declining survey response rates. The BLS has scaled back data collection for inflation metrics due to resource constraints. Response rates for employment surveys fell from 80.3% in 2020 to 67.1% last month. A Reuters poll revealed 89 of 100 policy experts worry about U.S. data quality, with many criticizing the lack of urgency in addressing issues. Reduced BLS staffing has also narrowed the scope of Consumer Price Index reporting, a critical inflation measure. 'Politicizing economic statistics is a self-defeating act,' warned Michael Madowitz of the Roosevelt Institute. 'Credibility is far easier to lose than rebuild.' Meanwhile, Kugler's departure lets Trump appoint a Fed governor ahead of schedule. The president has repeatedly clashed with Chair Jerome Powell over interest rates. Potential successors include Trump adviser Kevin Hassett and former Fed Governor Kevin Warsh. 'I would not read any political motivation into [Kugler's] decision,' said analyst Derek Tang. 'But she's calling Trump's bluff by handing him a vacancy to fill.' - Reuters
New Straits Times
35 minutes ago
- New Straits Times
Reduced 19pc US tariff fuels hope
KUALA LUMPUR: The United States has lowered its tariffs on imports from Malaysia to 19 per cent, bringing a wave of relief to the country's export-heavy industries and the local stock market. The new rate — a reduction from the original 25 per cent — is on a par with regional neighbours such as Indonesia, the Philippines, Thailand and Cambodia. The White House issued a presidential order dated July 31, outlining broader changes to the US Reciprocal Tariff framework under Executive Order 14257. It saw sweeping revision to the "liberation day" tariffs announced by President Donald Trump in April, reducing or slightly increasing rates on US trading partners. The April announcement saw Malaysia facing a 24 per cent tariff, adjusted to 25 per cent in July, before being reduced to 19 per cent effective Aug 8. This sits above the global baseline of 10 per cent. Industry players welcomed the lower rate, saying it reflects the result of constructive dialogue and engagement between the Malaysian and US governments. The cut may seem modest but it marks a significant boost for Malaysian exporters navigating increasingly competitive and cost-sensitive global supply chains, they added. At Bursa Malaysia, the news prompted a positive market reaction. The stock exchange's benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) saw an immediate rise as investors quickly priced in the positive impact on Malaysian exporters, particularly in sectors such as semiconductor, palm oil and rubber products. The key index rose 1.33 per cent, gaining 20.10 points to close at 1,533.35, up from Thursday's close of 1,513.25. Following the tariff clarity, the FBM KLCI is expected to trade higher next week, driven by clearer investor outlook. Enhancing Competitiveness While it is still too early to assess the full extent of the impact, several export-oriented industries may benefit from improved competitiveness and increased demand. Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said the tariff cut enhances the cost competitiveness of Malaysian-manufactured goods in the US market and reflects improved bilateral trade relations. He commended Prime Minister Datuk Seri Anwar Ibrahim's direct engagement with US President Donald Trump as well as the Investment, Trade and Industry Ministry and other relevant agencies for their continued efforts in advocating for the interests of Malaysian industry on the international stage. Malaysian Furniture Council president Desmond Tan said the tariff reduction brings Malaysia's treatment more in line with that of neighbouring Asean nations, helping to preserve its relevance within the regional supply chain. "Hopefully these latest tariffs can reduce uncertainty. However, exporters will still need to adapt to a higher-cost trade environment and continued support from the government remains valuable," Tan told the New Straits Times. Trade talks between the Malaysian and US governments began on May 6 and concluded on July 31, involving multiple platforms of engagement, according to the Investment, Trade and Industry Ministry. The US is Malaysia's largest export market, with trade valued at RM198.65 billion and its largest source of foreign direct investment, with RM32.82 billion in approved investments recorded in 2024. Underlying Risks While the 19 per cent tariff is "less damaging" than the initially proposed 25 per cent, some industry specialists said it still represents a hurdle that will weigh on Malaysia's exports in the global market. Moomoo Malaysia head of dealing Ken Low said the tariff easing is a short-term relief as there remains underlying risks that investors and exporters must navigate in the coming months. "While the tariff reduction is a positive development for Malay-sia's export sectors, it is far from a comprehensive solution," he said. For exporters, particularly in industries like semiconductor, palm oil and medical devices, the 19 per cent tariff could still pressure margins and profitability, Low said. Companies will likely face higher costs for their goods entering the US market, with potential price hikes or margin erosion. Additionally, supply chain disruptions caused by tariffs could delay shipments and reduce overall demand. In the glove sector, Malaysia — which is a major glove producer and exporter — no longer holds a rate advantage over Thailand, Indonesia or Cambodia. But the country's 19 per cent tariff is still lower than Vietnam's 20 per cent and China's 30 per cent, offering marginal competitiveness in the US market, according to CIMB Securities. In 2024, Malaysia held the largest share (about 45 per cent) of the global rubber glove market, followed by China (28 per cent) and Vietnam (10 per cent). CIMB Securities expects some incremental shift in the US glove orders to Malaysia, but higher tariffs will still increase US buyers' cost base, which may limit restocking or lead to leaner inventories.
