Bursa Malaysia ends lower, hit by mounting trade, geopolitical tensions
KUALA LUMPUR: Bursa Malaysia closed lower today, dragged down by mounting trade and geopolitical tensions, along with persistent foreign fund outflows for the second week in a row.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 0.34 per cent, falling 5.10 points to settle at 1,503.25 from 1,508.35 previously.
Across the broader market, losers outnumbered gainers with 703 counters falling against 297 gainers, while 425 stocks remained unchanged.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said market sentiment has turned increasingly cautious amid growing concerns over a global slowdown driven by tariffs and softening external demand.
"US-China trade tensions remain a central concern. Although the United States has extended a pause on tariffs for certain Chinese goods through to 31 August, tensions have flared after Beijing rejected US accusations of breaching the existing tariff truce, instead blaming Washington for backtracking," he said.
Sedek added that Malaysia's manufacturing PMI rose to 48.8 in May from the previous month, but remained below the 50-point mark, indicating the sector is still in contraction.
"Weak new orders and declining output reflect persistent demand weakness. As a trade-reliant economy, Malaysia remains vulnerable to global trade disruptions, with export-oriented sectors, particularly industrial products, technology and small-cap stocks, most exposed to downside risks," he said.
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