Bursa Malaysia Opens Higher On US Tariff Cut Announcement

By Danni Haizal Danial Donald

KUALA LUMPUR, Aug 1 (Bernama) -- Bursa Malaysia rebounded from two days of losses to open higher on Friday, supported by improved sentiment following the United States’ (US) move to reduce the tariff rate on Malaysian imports.

Washington earlier announced a 19 per cent tariff on Malaysian goods, effective Aug 1, 2025.

At 9.10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.83 points, or 0.58 per cent, to 1,522.08 from Thursday’s close of 1,513.25.

The benchmark index had opened 6.62 points higher at 1,519.87.

Market breadth was positive, with gainers outpacing decliners 200 to 138. A total of 292 counters were unchanged, 1,860 untraded, and 11 suspended.

Turnover stood at 244.74 million units worth RM111.66 million.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the lower-than-expected tariff is positive news for Malaysia.

“We believe investors will be happier to get this news. Hence sentiment should improve, and we revise our FBM KLCI target today to within the range of 1,510 to 1,530,” he told Bernama.

Earlier today, US President Donald Trump also said there would be no tariff if Malaysia, or Malaysian companies, chose to build or manufacture products within the US.

Since April, Malaysia has been negotiating with Washington, aiming to reduce the earlier-announced 24 per cent tariff rate. The latest round of talks was held on June 18 this year.

On July 7, Trump announced that it would impose a 25 per cent tariff on any and all Malaysian products sent into the country, separate from all sectoral tariffs effective today, one percentage point higher compared to what had been announced in April.

Among the heavyweights, Maybank, Tenaga Nasional and CIMB all climbed eight sen each to RM9.47, RM13.10 and RM6.63 respectively. Public Bank rose three sen to RM4.24 and IHH Healthcare was one sen higher to RM6.63. 

On the actively traded list, TWL inched up half-a-sen to three sen, Trive Property and Top Glove both remained unchanged at one sen and 68.5 sen respectively, and Pharmaniaga and NexG eased half-a-sen each to 17 sen and 53 sen respectively.

Top gainers included Malaysian Pacific Industries which gained 60 sen to RM20.74, Main Market debutant UMS Integration which garnered 29 sen to RM5.29, and Pinehill Pacific which added 14 sen to 42 sen. 

Among the top losers, United Malacca declined 10 sen to RM5.25, Unimech reduced six sen to RM1.34, and MSM Malaysia dropped 5.5 sen to 96.5 sen.

On the broader market, the FBM Emas Index gained 56.08 points to 11,456.55, the FBMT 100 Index edged up 60.75 points to 11,217.26, the FBM Emas Shariah Index rose 45.96 points to 11,507.63, the FBM 70 Index increased 71.58 points to 16,676.19, and the FBM ACE Index improved 6.53 points to 4,624.74.

By sector, the Financial Services Index advanced 120.70 points to 17,273.40, the Industrial Products and Services Index inched up 0.57 of a point to 159.71, the Plantation Index bagged 27.75 points at 7,422.79, and the Energy Index ticked up 1.90 points to 750.24.

-- BERNAMA