Bursa Malaysia Closes Lower Amid Cautious Sentiment Ahead of US Tariff Deadline

Monday, Jul 28, 2025 6:19 am ET1min read

Bursa Malaysia closed lower on Monday, paring earlier gains, due to cautious sentiment ahead of the US tariff negotiation deadline on Aug 1. The FTSE Bursa Malaysia KLCI fell 4.38 points or 0.29% to close at 1,529.38. Plantation and utility counters led the gainers, with investors adopting a more cautious posture awaiting further signals from Malaysia-US trade talks or fresh tariff-related announcements.

Bursa Malaysia closed lower on Monday, paring earlier gains, due to cautious sentiment ahead of the US tariff negotiation deadline on August 1. The FTSE Bursa Malaysia KLCI fell 4.38 points or 0.29% to close at 1,529.38. Plantation and utility counters led the gainers, with investors adopting a more cautious posture awaiting further signals from Malaysia-US trade talks or fresh tariff-related announcements.

The uncertainty surrounding US tariffs has been a significant factor influencing market sentiment. The Court of International Trade (CIT) has temporarily enjoined several sets of tariffs, including the "fentanyl" tariffs and reciprocal tariffs, pending the outcome of the government's appeal [1]. The Federal Circuit has also issued a stay on these rulings, allowing the tariffs to remain in effect. The U.S. government is expected to release letters setting their reciprocal tariff rates for approximately 150 trading partners by August 1, which may be higher than the baseline reciprocal tariff rate established in Executive Order 14257 [1].

Investors are closely monitoring these developments, as changes in tariff policies can significantly impact global trade and economic growth. The US tariff negotiation deadline adds further uncertainty, with potential implications for trade relations between Malaysia and the United States.

Malaysia has been actively engaging in trade negotiations with the US, aiming to mitigate the impact of potential tariffs. The country's plantation and utility sectors, which have shown resilience, are expected to continue to perform well despite the cautious market sentiment. However, the overall market remains cautious, awaiting more definitive signals from the trade negotiations.

References:
[1] https://www.tradecomplianceresourcehub.com/2025/07/25/trump-2-0-tariff-tracker/

Bursa Malaysia Closes Lower Amid Cautious Sentiment Ahead of US Tariff Deadline

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