The Malaysian stock market experienced another decline on Monday, reversing the brief respite it enjoyed after breaking a four-day losing streak that saw it drop over 35 points or 2.1 percent. The Kuala Lumpur Composite Index now hovers slightly above the 1,550 mark, with indications pointing towards potential accelerated losses on Tuesday.
Globally, forecasts suggest a negative trend for Asian markets largely due to prevailing concerns over tariffs and their impact on interest rate projections. Both European and U.S. markets experienced downturns, a sentiment likely to be mirrored by Asian exchanges.
On Monday, the Kuala Lumpur Composite Index concluded slightly lower amid losses in the industrial sector and mixed results from telecommunications and financial sectors. The index recorded a decrease of 3.29 points or 0.21 percent, closing at 1,553.63, within trading ranges of 1,546.68 to 1,556.74 throughout the day.
Key movers included 99 Speed Mart Retail which increased by 1.80%, while Axiata saw a decline of 0.45%. Celcomdigi experienced a rise of 0.53%, whereas CIMB Group dropped by 0.25%. Gamuda significantly grew by 2.48%, IHH Healthcare edged up by 0.14%, Maxis fell by 0.29%, and Maybank decreased by 0.39%. Additionally, MISC advanced 1.24%, MRDIY fell back by 1.79%, Nestle Malaysia decreased by 0.20%, and Petronas Chemicals significantly dropped by 5.16%. Other notable movements included PPB Group with a decline of 2.01%, Press Metal rose by 0.20%, Public Bank increased by 0.23%, QL Resources climbed 1.09%, RHB Bank dipped 0.16%, Sime Darby plunged 3.11%, Telekom Malaysia declined by 0.91%, Tenaga Nasional fell slightly by 0.15%, YTL Corporation tumbled 1.57%, YTL Power tanked 2.56%, and several companies like IOI Corporation, Kuala Lumpur Kepong, SD Guthrie, Sunway, and Petronas Gas remained unchanged.
In the United States, Wall Street's major indices opened weak on Monday and remained under pressure despite rebounding somewhat from the day's lows. The Dow Jones Industrial Average dropped by 122.75 points or 0.28 percent, closing at 44,421.91. The NASDAQ Composite slid 235.49 points or 1.20 percent to 19,391.96, and the S&P 500 decreased by 45.96 points or 0.76 percent, ending at 5,994.57.
The markets' downturn was driven by fears of an escalating global trade war after President Donald Trump implemented a 25 percent tariff on imports from Canada and Mexico and a 10 percent tariff on Chinese imports. He also hinted at possible tariffs on goods from the United Kingdom and the European Union, marking a significant escalation in trade tensions.
In retaliation, Canada and Mexico announced tariffs on American products, and China promised countermeasures. The European Union also threatened firm retaliation if it were targeted.
Investors are concerned that a trade conflict could negatively affect the earnings of major corporations and hinder global economic growth. The tariffs might also reignite inflation concerns, potentially prompting the Federal Reserve to maintain its current interest rate stance for an extended period.
Meanwhile, oil futures closed higher on Monday, buoyed by the possibility of disrupted oil markets in North America due to the new tariffs. West Texas Intermediate crude oil futures for March finished at $73.16 per barrel, marking an increase of $0.63 or approximately 0.87 percent.
