FX.co ★ Malaysia Stocks Slump to 18-Month Low

The Malaysian stock market experienced a significant decline on Monday morning, with shares dropping by 65 points, or 4.5%, to reach 1,436—their lowest level since the beginning of October 2023. This marked the third consecutive session of losses as all sectors fell into negative territory. The technology sector, in particular, spearheaded the downturn, followed by energy minerals, transportation, and industrial services. The Kuala Lumpur Stock Exchange (KLSE) mirrored the downturn in US stock futures after a lackluster session on Wall Street the previous Friday, sparked by apprehensions of a global economic recession. Investor sentiment was further dampened by the announcement of a 24% tariff on Malaysian imports into the United States, set to be implemented from April 9, 2025. Malaysia holds a significant position in the semiconductor market, contributing 13% of global semiconductor testing, and the US is a critical trading partner, accounting for 11.3% of Malaysia's total trade last year. Notable declines were observed in companies such as Kuala Lumpur Kepong (-5.4%), Public Bank (-5.0%), Petronas Dagangan (-4.1%), Telekom Malaysia (-4.7%), IHH Healthcare (-3.7%), and Maybank (-3.5%).