
Bursa Malaysia up 0.45% at close as investors welcome US-China trade framework
BURSA Malaysia ended higher on Wednesday, with investors adopting a cautiously optimistic stance following the announcement of a United States–China trade framework agreement, which includes provisions on technology trade.
At 5 pm, the FBM KLCI rose 6.89 points, or 0.45 per cent to 1,523.84 from Tuesday's close of 1,516.95.
The benchmark index opened 3.91 points higher at 1,520.86 this morning, which was its day's low, and subsequently moved to a high of 1,530.85 in the early session.
On the broader market, gainers thumped decliners 545 to 375, while 528 counters were unchanged, 921 untraded and 11 suspended.
Turnover soared to 3.27 bil units worth RM2.59 bil compared with yesterday's 2.72 bil units worth RM2.09 bil. —June 11, 2025

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PETALING JAYA: As the world at large heaved a sigh of relief at the conclusion of the United States-China trade discussions in London on Tuesday, attention has turned back towards Malaysian equities, as investors wonder what is in store for the FBM KLCI. This is especially relevant given that Malaysia has yet to conclude its own trade talks with Washington as the former continues its effort to reduce the 24% hitherto provisional tariffs that were imposed on April 2 by US President Donald Trump. Most analysts, however, are of the view that at the very least, the conclusion of trade meetings between the United States and China have put paid to any foreseeable escalation of trade tensions between the two superpowers in the near term, and while cautious sentiments still surround the FBM KLCI, the benchmark index should perform better in the second half of financial year 2025 (2H25). Rakuten Trade head of equity sales and analyst Vincent Lau believes that the announcement from US Treasury Secretary Scott Bessent that the Trump administration may extend the 90-day tariff pause on some countries in order to continue trade negotiations, signals further goodwill. 'We feel things can only improve from here, and 2H25 could be stronger for the FBM KLCI following slightly underwhelming 1Q25 corporate results, especially if Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz can conclude a deal with the Trump administration promptly in next week's talks,' he told StarBiz. As such, Lau acknowledged investors could still adopt a wait-and-see approach over the next week, which has caused the FBM KLCI to lag behind other regional and global bourses, predicting that the index could trade between 1,520 and 1,550 points in the third week of June. He said this is because investors may still be concerned that Malaysia is largely an export-driven market, as businesses are also taking time to adjust to the impact of the expanded sales and services tax (SST) that will come into effect on July 1. On the other hand, he opined that with the European Central Bank having reduced rates by 25 basis points this month, and Bank Negara and the US Federal Reserve also considering a similar move within the next quarter, funds are ready to return to the market. Lau added that the SST broadening by the government is necessary, which would assure investors that the current administration is serious in improving its tax revenue. Of interest, Areca Capital chief executive Danny Wong commented that the US-China trade tension may not have been as bad as have been portrayed in the mainstream media in recent months, given this week's developments. 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Beijing has tagged the United States with a 10% levy rate in return. The agreement's positive signal of a trade truce may boost global market sentiment, but the high tariffs could pressure Malaysian exporters reliant on the US or Chinese markets, especially in technology and semiconductors, she pointed out. The analyst explained, 'The market's reaction to the United States-China trade truce will likely solidify next week. 'If the framework is ratified by Trump and Xi, optimism could drive the FBM KLCI toward the 1,550 resistance level, especially if global equities rally. 'However, ongoing trade talks between Malaysia and the United States will remain a headwind. 'Any indication of punitive tariffs on Malaysian exports, such as electronics, which account for about 40% of Malaysia's exports, could pressure the index, particularly tech-heavy components like Inari Amertron Bhd and Nationgate Holdings Bhd .' 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