After the afternoon session on Monday, the FBM KLCI plummeted 68 points, or 4.51%, to 1,436.09. This was its sharpest one-day decline since March 2008. Escalating global trade tensions sparked a widespread selloff across regional markets.
The major bank stocks all declined. $MAYBANK (1155.MY)$ dropped by 2.4%, while both $CIMB (1023.MY)$ and $RHBBANK (1066.MY)$ saw their shares fall by more than 4%. Blue-chip stocks across various industries generally plummeted. $GAMUDA (5398.MY)$'s stock price decreased by 9.63%, and $YTLPOWR (6742.MY)$ 's stock price dropped by 8.44%.
Most Asian stock indices plunged. Japan’s Nikkei 225 slid 7.8% to late-2023 lows, and South Korea’s Kospi dropped 4.99% due to investor concerns over global trade disruptions.
US President Donald Trump announced a 10% import tariff effective April 5 and reciprocal tariffs on surplus countries like Malaysia from April 9.
Apex Research warned on Monday that without an immediate trade - dispute resolution, risk-off sentiment could continue. China's retaliation is likely to heighten trade uncertainties. The firm anticipates continued volatility this week as investors assess US - China trade developments. It advised investors to be defensive and monitor tariff, economic, and central bank news, noting that short term rallies may occur despite overall uncertainty.
Hong Leong Investment Bank (HLIB) Research warned that with US markets slumping, Malaysia’s bourse may face volatility due to tariffs and recession fears. However, it suggested that long term investors consider buying fundamentally strong stocks at current attractive FBM KLCI valuations.
Comment(1)
Very informative!
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