Bursa Malaysia Falls 0.36% Amid Trade Tensions and Tariffs Concerns.

Bursa Malaysia declined 0.36% at midday due to renewed trade tensions, with the FBM KLCI falling 5.56 points to 1,519.03. The benchmark index opened 1.70 points higher at 1,526.29 and moved between 1,518.75 and 1,527.90 throughout the session. Market breadth remained negative, with decliners outpacing gainers 524 to 276. Turnover stood at 1.81 billion shares valued at RM982.47 million.

The Bursa Malaysia stock market experienced a decline of 0.36% at midday on July 2, 2025, as renewed trade tensions weighed on the market. The FBM KLCI fell 5.56 points to 1,519.03, opening 1.70 points higher at 1,526.29 and fluctuating between 1,518.75 and 1,527.90 throughout the session. The market breadth remained negative, with decliners outpacing gainers 524 to 276, and turnover stood at 1.81 billion shares valued at RM982.47 million [1].

The global market sentiment was mixed, with the Asian markets showing directionless movements amidst a lack of catalysts. Oil and biotechnology stocks were under pressure, while the European and U.S. markets were mixed and flat. The KLCI finished slightly higher on Friday despite gains from the financial sector being capped by weakness from the telecoms and mixed performances from the industrials and plantations. Among the active stocks, notable movements included AMMB Holdings advancing 0.79%, while Axiata and Celcomdigi slumped 0.78% [1].

The lead from Wall Street was soft, with the major averages opening slightly higher on Friday but quickly turning lower before ending mixed and little changed. The Dow shed 142.31 points or 0.32% to finish at 44,342.19, while the NASDAQ rose 10.06 points or 0.05% to close at 20,895.66 and the S&P 500 dipped 0.57 points or 0.01% to end at 6,296.79 [1].

Malaysia reiterated its commitment to its 2025 trade growth target despite escalating trade tensions with the U.S. over new tariff actions. The country’s Investment, Trade, and Industry Minister, Zafrul Aziz, expects trade to grow by 4% to 5% this year, despite global economic uncertainties and the threat of tariffs. Malaysia’s exports fell in May 2025 for the first time since September 2024, indicating potential challenges ahead [2].

The stock market indices are high despite the threat of new tariffs to be issued by the U.S. against many of its trade partners. The Nasdaq has been resilient and continues its record high streak, with Nvidia and Microsoft significantly boosting the index. However, the market remains cautious about potential tariff threats and the impact on the broader economy [3].

As the deadline for U.S. tariffs approaches, Malaysia is making a diplomatic push to cushion or dodge the harshest tariffs. The government is not against liberalization but aims to ensure any changes are strategic and inclusive for the country's long-term economic aspirations [2].

In conclusion, the Bursa Malaysia stock market faced renewed trade tensions amidst mixed global sentiment. The market's resilience in the face of potential tariff threats is a testament to its adaptability and the strong performance of key sectors like technology. However, the ongoing trade negotiations and their potential impact on the economy will continue to influence market movements.

References:
[1] https://www.nasdaq.com/articles/malaysia-stock-market-may-spin-its-wheels-monday
[2] https://www.mitrade.com/insights/news/live-news/article-3-959601-20250715
[3] https://www.fxleaders.com/news/2025/07/21/nasdaq-reaches-new-highs-stock-market-ignores-tariff-threats/