Latest news with #UnitedStates-Malaysia
New Straits Times
4 days ago
- Business
- New Straits Times
Bursa Malaysia ends lower as tariff concerns weigh on investor sentiment
KUALA LUMPU: Bursa Malaysia ended lower today, reflecting a cautious undertone among investors despite an improvement in broader market sentiment, an analyst said. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 12.11 points or 0.8 per cent to 1,525.40 from Monday's close of 1,537.51. The benchmark index opened 1.45 points lower at 1,536.06 The market breadth was negative, with losers outnumbering gainers 601 to 412, while 498 counters were unchanged, 910 untraded and nine suspended. Turnover stood at 3.07 billion shares worth RM2.36 billion compared to 2.93 billion units worth RM1.67 billion on Monday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said investor attention remains focused on the United States-Malaysia tariff negotiations, ahead of the Aug 1 deadline for a proposed 25 per cent import duty on Malaysian goods. He said the market appears to be factoring in a drawn-out negotiation process, contributing to prevailing risk aversion. While the Investment, Trade and Industry Ministry's approval of a strategic trade permit for artificial intelligence (AI) chips is a positive move, he said concerns over possible US export controls on AI chip shipments to Malaysia continue to weigh on sentiment, especially in the technology and semiconductor sectors. "Nonetheless, from a medium- to longer-term perspective, we see the strengthening of governance and compliance standards as a positive structural shift that may enhance Malaysia's competitive positioning within global value chains, potentially serving as a future catalyst for investor confidence," he added.
The Star
23-06-2025
- Business
- The Star
CIMB revises 2025 GDP forecast to 4.3% on trade easing, stronger US ties
KUALA LUMPUR: CIMB Treasury and Market Research has revised its 2025 gross domestic product (GDP) growth forecast for Malaysia upwards to 4.3 per cent from 4.0 per cent previously, premised on easing trade tensions and indications of constructive United States-Malaysia dialogue. In a note, it said that although this represents an improvement, it still falls short of the government's 4.5-5.5 per cent target, reflecting a more cautious view on the recovery in external demand and domestic momentum. "Along with benign inflation (Jan-April 2025: 1.5 per cent year-on-year), this allows Bank Negara Malaysia (BNM) room to cut the overnight policy rate (OPR) to 2.75 per cent in the third quarter of 2025,' it said. Meanwhile, Kenanga Investment Bank Bhd (Kenanga IB) is maintaining its 2025 GDP growth forecast for Malaysia at 4.3 per cent, as domestic demand and the services sector are expected to stay resilient despite global economic uncertainty. However, it said persistent weakness in the commodity-related sector will continue to weigh on growth momentum. On export, the investment bank noted that exports grew 5.5 per cent in the first five months of this year, ahead of the full-year forecast. "Although May's export data was underwhelming, we expect the dip to be short-lived with a likely rebound in June. However, growth is expected to remain volatile in the near term due to the July reciprocal tariff deadline,' it said. Nevertheless, Kenanga IB see continued support from the global tech upcycle, driven by artificial intelligence-related demand, new product launches, and Malaysia's export diversification. - Bernama
