FX.co ★ Malaysia Stocks Slump on Trade War Worries

The KLCI Index experienced a significant drop of 24 points, equivalent to a 1.7% decrease, reaching 1,439 in early trade on Friday morning. This decline comes on the heels of a 4.5% rally seen in the previous session. The downturn followed a market sell-off on Wall Street on Thursday after the White House announced that tariffs on China had surged to 145%, intensifying trade tensions between the U.S. and China and amplifying recession concerns. While volatility gripped the market, traders engaged in bargain-hunting despite prevailing uncertainties regarding the tariffs. Most sectors saw losses, with energy minerals declining by 4.1%, followed by industrial services at a decrease of 2.1%, producer manufacturing down by 1.8%, and finance easing by 1.6%. Leading the decline were notable companies such as CIMB Holdings, which fell 4.8%, Maybank with a decrease of 2.2%, Hong Leong Bank dropping 1.7%, alongside Kuala Lumpur Kepong, Petronas Dagangan, and Press Metal Aluminium Holdings, each falling by 1.6% or more.