KUALA LUMPUR (May 31): The FBM KLCI rose 0.49% at mid-morning today, bucking the trend at regional markets spooked by sudden trade tariffs on Mexico by the United States, lfted by select blue chips.

At 10am, the FBM KLCI rose 8.21 points to 1,644.71

Losers edged gainers by 273 to 271, while 270 counters traded unchanged. Volume was 593.55 million shares valued at RM378.61 million.

The gainers included Hong Leong Bank Bhd, Tenaga Nasional Bhd, Kuala Lumpur Kepong Bhd, Bursa Malaysia Bhd, SAM Engineering & Equipment Bhd, Sime Darby Plantation Bhd, DRB-Hicom Bhd, Can-One Bhd, Nestle (M) Bhd and Amway Holdings (M) Bhd.

The actives included Vortex Consolidated Bhd, Bumi Armada Bhd, Sapura Energy Bhd, Dayang Enterprise Holdings Bhd and PCCS Group Bhd.

The losers included Carlsberg Brewery Malaysia Bhd, Petron Malaysia Refining & Markering Bhd, Scientex Bhd, British American Tobacco (M) Bhd and Oriental Holdings Bhd.

Asian shares extended a month-long slide and sovereign bonds surged on Friday after U.S. President Donald Trump ramped up trade tensions globally by suddenly slapping tariffs on all goods from Mexico, sending the peso tumbling, according to Reuters.

Washington will impose a 5% tariff from June 10, which would then rise steadily to 25% until illegal immigration across the southern border was stopped, it said.

Hong Leong IB Research said sentiment on Wall Street will remain weak as China has put a pause to buy American soy amid the escalated trade tensions between the US and China.

“Also, traders would trade on a cautious tone ahead of several major events such as June Fed meeting and the G20 summit, where traders could monitor the interest rate outlook and progress between President Trump and President Xi on the trade front, respectively. Hence, the Dow could range between the 24,500-26,000 levels in the near term.

“Despite the mildly positive Wall Street, coupled with the recent upgrade on Malaysia’s equities by the foreign banks, we believe the technical rebound on KLCI may be limited around 1,640-1,650 as tweet from President Trump regarding the 5% tariffs on Mexico products may dampen the market sentiment regionally, eventually leading to profit taking activities on KLCI.

“Nevertheless, traders may focus on export-oriented segment on the back of weaker ringgit tone around RM4.20/USD,” it said.