KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
China announced plans to initiate an anti-dumping investigation into canola imports from Canada following Canada's recent decision to impose tariffs on Chinese electric vehicles (EVs) and other goods. This development is the latest in a series of escalating trade tensions between the two countries.
Key Takeaways:
Retaliation for Canadian Tariffs: China's announcement comes after Canada imposed a 100% tariff on Chinese electric vehicles and a 25% tariff on imported steel and aluminum, aligning itself with similar actions taken by the US and the European Union. China's Commerce Ministry condemned these "discriminatory unilateral restrictive measures," stating that it opposes Canada's actions despite the objections of multiple parties.
Allegations of Dumping and Market Impact: The Chinese investigation focuses on the rapid increase in Canadian canola exports, which rose by 170% year-on-year to $3.47 billion in 2023, accompanied by a decline in prices. The Chinese government alleges that these exports have harmed domestic rapeseed-related industries due to unfair competition. In response to the announcement, domestic rapeseed oil futures surged by 5.49% to 2,363 yuan per metric ton, reaching a one-month high.
Wider Trade Measures and WTO Involvement: In addition to the canola probe, China will investigate certain Canadian chemical imports for similar anti-dumping concerns. The Chinese government also plans to seek recourse through the World Trade Organization (WTO) dispute settlement mechanism regarding Canada's recent trade measures.
In summary, the anti-dumping probe into Canadian canola imports marks a new chapter in the ongoing trade friction between China and Canada, reflecting broader geopolitical and economic tensions. China's response signals its intent to counteract perceived unfair trade practices and defend its domestic industries through both national measures and international legal avenues.
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