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.
South Korea is reportedly considering a plan to increase its US oil and gas imports if Donald Trump wins the election, which could lead to renewed trade pressures on the country. Officials in Seoul have been strategizing for either a Trump or Harris presidency, with greater trade challenges expected under Trump.
In anticipation, South Korea's government may encourage local companies to purchase more US energy to address its trade surplus with America. Currently, around 11% of South Korea’s gas and 17% of oil imports come from the US, and companies like SK Innovation and GS Caltex are among the top importers.
With Trump pledging to impose tariffs on imports and increase pressure on trade partners, South Korean officials have been meeting with business leaders to discuss contingency plans. Energy imports offer a relatively flexible area for adjustment due to heavy regulation, enabling the government to gradually boost US oil purchases. Additionally, risks in the Middle East may drive companies to diversify further toward US sources.
The stakes are high for South Korea’s economy, which relies on exports and could shrink by up to 0.67% if Trump imposes universal tariffs. With energy security and economic stability on the line, South Korean leaders are navigating potential shifts in US foreign policy closely.
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