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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Chinese EV Makers Face Challenges in Europe Amid New Tariffs and Declining Sales

Chinese electric vehicle (EV) makers suffered a setback in Europe in July 2024, as new tariffs and a general slowdown in EV demand hit their sales. The introduction of tariffs on Chinese-made EVs, which took effect on July 5, has added pressure on automakers already grappling with reduced incentives in key markets like Germany.

Key Takeaways:

  1. Impact of New Tariffs: Chinese automakers, including SAIC Motor Corp’s MG and BYD Co, saw their share of EV registrations in Europe drop to 9.9% in July 2024, down from 10.2% a year earlier. New tariffs have increased duties on Chinese-made EVs to as high as 48%, significantly impacting their competitiveness in the European market. SAIC’s MG brand experienced a 38% decrease in registrations compared to July 2023 and a 60% decline from June 2024 as it pushed more than 13,000 vehicles into dealerships ahead of the tariff deadline.

  2. Decline in EV Demand and Trade Tensions: The overall demand for EVs in Europe weakened following the removal of incentives in Germany, Europe’s largest auto market. In July, EV sales in Germany dropped by 37%, and year-to-date sales are down by 20%. Meanwhile, retaliatory trade tensions have flared, with China launching a probe into EU brandy dumping but refraining from immediate tariffs. The EU's duties on Chinese EVs could become permanent by November, depending on the outcome of trade negotiations.

  3. Adjusting to Market Changes: To mitigate the impact of tariffs, Chinese automakers are expanding local production capacities in Europe. BYD, which increased its presence in Europe compared to last year, is building plants in Hungary and Turkey to circumvent the new tariffs. Other companies, like Polestar and Xpeng Inc, are also exploring or setting up manufacturing bases in Europe and the US to avoid tariff challenges.

Despite these challenges, some European markets, such as Belgium, Denmark, and the UK, have shown growth in EV sales due to continued incentives, indicating that policy measures still play a crucial role in shaping market dynamics for electric vehicles.

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