TARIFF TENSIONS LIKELY TO TRIGGER CHOPPY TRADING ON BURSA MALAYSIA NEXT WEEK

By Anas Abu Hassan

KUALA LUMPUR, April 12 (Bernama) -- Heightened volatility in global markets is expected to weigh on investor sentiment, potentially leading Bursa Malaysia into an uncertain trend next week, as tariff-related tensions between the United States and China remain unresolved.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng noted that the local bourse is likely to continue experiencing choppy trading, mirroring the fluctuations seen over the past week.

"US President Donald Trump’s move to escalate his standoff with China is expected to heighten tensions and put further pressure on the global economic outlook," he told Bernama.

On Friday, China announced an increase in tariffs on US imports to 125 per cent, retaliating against Trump's decision to raise duties on Chinese goods to 145 per cent.

The retaliation measures have intensified fears of a prolonged trade war, raising concerns over potential disruptions to global supply chains.

Back home, Thong expects the FTSE Bursa Malaysia KLCI (FBM KLCI) to trend within the 1,430 to 1,493 range in the coming week.

"Based on technical analysis, the benchmark index needs to break back above the 1,493–1,500 level to regain momentum," he added.

Meanwhile, SPI Asset Management managing partner Stephen Innes said that despite the tariff walk-back, Malaysia’s close economic ties to China -- the primary target of US trade pressure -- continue to expose the country to downside risk.

"Even with a 90-day tariff moratorium in place, we’re entering a fog of uncertainty. Expect the market to remain range-bound and highly sensitive to headlines," he said.

Bursa Malaysia traded in a yo-yo pattern this week, as tariff-related announcements kept market sentiment jittery, mirroring the volatility seen on Wall Street, where major indices swung between gains and losses throughout the week.

On a Friday-to-Friday basis, the key index declined 49.38 points to 1,454.76 from 1,504.14 a week earlier.

The FBM Emas Index dipped 385.57 points to 10,810.08, the FBMT 100 Index fell by 372.21 points to 10,601.67, and the FBM Emas Shariah Index decreased by 318.27 points to 10,604.91.

The FBM 70 Index shrank 585.24 points to 15,265.93 and the FBM ACE Index slipped 220.41 points to 4,412.19.

By sector, the Industrial Products and Services Index edged down 7.77 points to 139.43, the Financial Services Index tumbled 771.98 points to 17,534.53, the Plantation Index slumped 269.66 points to 7,062.53, and the Energy Index lost 70.53 points to 648.74.

Turnover surged to 19.65 billion units valued at RM17.56 billion from 6.70 billion units valued at RM5.74 billion in the preceding week.  

The Main Market volume soared to 11.09 billion units worth RM14.08 billion against 3.98 billion units worth RM6.23 billion previously.  

Warrants turnover swelled to 6.18 billion units worth RM524.37 million versus 1.95 billion units worth RM237.70 million in the prior week.

The ACE Market volume increased to 2.35 billion units valued at RM699.77 million from 769.81 million units valued at RM271.19 million previously.

-- BERNAMA