FBM KLCI inches up as US tariff threats spur safe-haven demand

KUALA LUMPUR: The FBM KLCI ended slightly higher on Monday as renewed U.S. tariff threats kept investors cautious, driving demand for safe-haven assets like gold, which touched a three-week high.

The benchmark index settled 1.44 points or 0.09% higher at 1,537.51, after moving between an intraday high of 1,538.33 and a low of 1,533.93.

In the wider market, losers outnumbered gainers 514 to 432, with 2.93 billion shares worth RM1.7bil changing hands.

Dealers expect market sentiment to remain cautious following US President Donald Trump’s tariff move on Mexico and the EU, which reignites trade tensions and unsettles equities.

Investors are likely to stay on the sidelines amid lingering uncertainty and risk-off sentiment, they said.

Among the gainers on Bursa Malaysia, F&N rose 38 sen to RM28.98, Hong Leong Bank gained 38 sen to RM19.56, Apollo Food added 17 sen to RM6.40 and Kotra Industries climbed 12 sen to RM4.23.

Nestle slid 64 sen to RM76.74, Kuala Lumpur Kepong fell 28 sen to RM20.39, Malaysian Pacific Industries lost 22 sen to RM20.78 and Dutch Lady eased 20 sen to RM28.28.

Reuters reported that gold hit a three-week high on Monday as safe-haven demand rose after Trump threatened 30% tariffs on EU and Mexican imports. Spot gold edged up 0.1% to $3,359.69, while U.S. futures gained 0.3% to $3,373.30.

On the forex market, the ringgit weakened 0.12% against the US dollar to 4.2552, and slipped 0.04% against the Singapore dollar to 3.3219.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.1%.

Japan’s Nikkei 225 closed 0.28% lower at 39,459.62, while South Korea’s Kospi gained 0.83% to end at 3,202.03.

China’s blue-chip CSI300 index finished up 0.07% at 4,017.67, while the Shanghai Composite Index added 0.27% to 3,519.65.

Hong Kong’s Hang Seng Index closed up 0.26% at 24,203.32, and Singapore’s Straits Times Index rose 0.18% to 3,312.45.