Bursa Malaysia opened to a sharp downturn on Monday as heightened global trade tensions triggered widespread panic selling, with over 700 counters in the red and the benchmark FBM KLCI plunging 3% in early trade.
The FBM KLCI dropped nearly 30 points at the opening bell to 1,475.31, marking its steepest fall at the start of a trading day since the Covid-19 market crash in March 2020. By 9.12am, the index had extended losses to 1,441.29—down 63 points—breaking through key technical support levels at 1,500 and 1,450. The index is now at its lowest point in 17 months, last seen in November 2023.
Broad-based selling pressure gripped the market, with no sector spared. Heavyweights led the decline: Maybank fell 31 sen to RM9.93, Tenaga Nasional slid 42 sen to RM13.06, and Nestlé tumbled RM2.26 to RM70.74.
The sell-off follows escalating global trade tensions after China announced retaliatory tariffs in response to former US President Donald Trump’s latest reciprocal trade measures. The move has stoked fears of a renewed trade war with wide-ranging repercussions on global growth and supply chains.
Analysts are warning of a challenging road ahead. “The risk of a full-blown trade war could potentially push the global economy towards recession,” noted one analyst.
Despite the bearish outlook, TA Securities suggested there may be a window for recovery if diplomatic channels open. “The possibility for bilateral negotiations ahead with the Trump administration could mitigate the adverse market sentiment,” it said in its market commentary.
Meanwhile, US markets are also bracing for further declines. Futures on the S&P 500 were down 3% at the time of writing, while Dow Jones futures pointed to a 2.5% drop—signalling another volatile session ahead for global markets.
