Stock Market Spark: June 4, 2022 - A Rollercoaster Ride Amid Dancing Tariffs
A toe-tapping dance of tariffs, optimism, and uncertainty
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In a nutshell: The stock market scene in Kuala Lumpur today saw a bullish start, fueled by optimistic vibes from Wall Street, along with hopes of a potential reversal in US President Trump's tariff policy. But underlying anxiety about the tariffs' potential impact on US economic data lingered. Meanwhile, the ongoing dance of tariffs between the US and China raised eyebrows, with expectations of a high-level meeting between Xi Jinping and Trump to put the trade tension on ice.
9:08am - FBM KLCI rises, breezing past 1,500
As bells chimed at the Bursa Malaysia, the FTSE Bursa Malaysia KLCI (FBM KLCI) marched ahead, adding 3.27 points to 1,506.52 compared to Tuesday's close. The index flaunted its strength at the opening, climbing 3.85 points higher at 1,507.10.
A tug-of-war game unfolds
In the broader market, 141 stocks claimed victory over the 119 that succumbed, with 259 remaining undefeated, 1,820 sitting this one out, and 18 taking a timeout. Over at the trading post, 81.17 million units worth RM40.27 million exchanged hands.
Foreign funds on a shopping spree
Thong Pak Leng, the vice-president of equity research at Rakuten Trade Sdn Bhd, shared his insights, hinting at the persistent selling by foreign funds. Despite this, the directionless benchmark index hovered between the 1,500-1,510 points range, suggesting volatility.
Heavyweights on the dance floor
Among the influential players, YTL Corporation, PMetal, Hong Leong Financial Group, Petronas Chemicals, and SD Guthrie dominated the ballroom floor, each showcasing encouraging gains in their market values. On the opposite side, KNM, Avangaad, Toyo Ventures, SSF Home Group, PA Resources, and Managepay Systems exchanged heated exchanges, dancing to their own rhythms.
Index boards - A chess game in progress
The FBM Emas Index flaunted its dominance as it fortified its position by 20.89 points, inching closer to the 11,275.35 mark, while the FBMT 100 Index expanded by 21.58 points. Conversely, the FBM ACE Index slipped by 10.32 points.
Meanwhile, the FBM Emas Shariah Index and the FBM 70 Index amassed gains of 29.68 points and 22.01 points, respectively.
Sector-wise shuffle
The Financial Services Index, Industrial Products and Services Index, Energy Index, and Plantation Index each striking poses, maintaining a steady dance.
As the trading day winded down, the influence of US-China trade tensions and the potential outcome of their upcoming high-level dialogue remained the talk of the town. Investors held their breath, gearing up for another exhilarating round of this dynamic dance.
- In Kuala Lumpur, Malaysia, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose above 1,500 points, defying the ongoing dance of tariffs between the US and China, and expectations of a high-level meeting between President Trump and Xi Jinping.
- Amid this global financial dance, foreign funds were observed selling aggressively, contributing to the directionless nature of the benchmark index, which fluctuated between the 1,500 to 1,510 points range.
- Meanwhile, domestic heavyweights like YTL Corporation, PMetal, Hong Leong Financial Group, Petronas Chemicals, and SD Guthrie gained significant value in the market, painting a picture of business resilience.
- As the trading day concluded, personal-finance investors continued to monitor the influence of US-China trade tensions and the forthcoming high-level dialogue, bracing themselves for another round in this dynamic dance, with technology and general-news updates providing the backdrop.
