Bursa Malaysia rallies as talk of tariffs ‘de-escalation’ lifts global outlook

KUALA LUMPUR: Suggestion from a top US policymaker that the trade conflict between the US and China was not sustainable and will “de-escalate” helped buoy global market sentiment on Wednesday.

At the starting bell, Malaysia’s benchmark index leapt 11.11 points to 1,497.36, tracking Wall Street’s overnight surge as remarks from US Treasury Secretary Scott Bessent raised hopes the two leading economies would find some middle-ground in negotiations.

Also helping to raise market sentiment, US President Donald Trump doused speculation he had plans to sack Federal Reserve chair Jerome Powell in a bid to force an interest rate cut by the central bank.

TA Securities said in its commentary the overnight rally on Wall Street might provide some support to the otherwise lacklustre domestic market, although it noted the prevailing caution.

“Immediate resistance is maintained at 1,527, which represents the 50%FR of the rally from the 1,369 low (June 2023) to the 1,684 peak (August 2024), with next upside hurdles seen at the 61.8%FR

(1,564) and the 76.4%FR (1,610).

“Immediate support remains at the

23.6%FR (1,444) with stronger supports seen at the 1,400 psychological level, followed by the June 2023 low of 1,369,” said the research firm.

Malacca Securities said in its daily market report bargain-hunting activities are expected to spill over into the local market with the technology sector likely to be one of the key beneficiaries.

It said glove manufacturers could be undervalued due to potential mid-term recovery in order flows and improved cost competitiveness as US tariffs weigh on Chinese peers.

The broker also anticipates a rebound in banking due to stable earnings and attractive dividend yields while investors could rotate into domestically oriented consumer names like 99 Speed Mart and safe-haven proxies to hedge against lingering economic turmoil.

Among the financial heavyweights, Maybank edged three sen higher to RM9.98, Hong Leong Bank climbed 38 sen to MR19.92 and CIMB rose six sen to RM6.81.

PETRONAS Dagangan added 28 sen to RM19.40 wihle PETRONAS Chemicals gained 10 sen to RM3.18.

Leading Bursa Malaysia in active trading, Ingenieur was flat at 3.5 sen, MSB rose 0.5 sen to 17 sen and Pertama Digital gained 1.5 sen to 14 sen.