KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
US President-elect Donald Trump’s threat of 25% tariffs on Mexico has sent shockwaves through the economy, with analysts slashing 2025 growth forecasts. Moody’s projects just 0.6% growth, the weakest since 2020, while S&P Global cut its estimate to 1.2% amid fears of reduced trade, investment, and remittances.
Economists warn the proposed tariffs could jeopardize nearly 11% of Mexico’s GDP, while dampening foreign investment in key sectors like manufacturing. Despite efforts by Mexican President Claudia Sheinbaum to negotiate with Trump, uncertainty lingers over bilateral trade relations.
Trump claims Mexico has agreed to curb migration and drug inflows, but retaliatory tariffs are being prepared as a contingency. Analysts argue that any tariffs would harm American companies, potentially leading to their swift reversal.
Key highlights:
- Peso gains 0.5% to 20.49 per dollar following Trump’s comments.
- Mexico surpassed China as the US’s top trading partner.
- Bank of America and Franklin Templeton predict tariffs, if imposed, will likely be short-lived.
- Mexico’s central bank remains cautious, monitoring potential inflation and economic impacts.
While the long-term outlook remains uncertain, Mexico's resilience and targeted strategies could mitigate some of the immediate challenges posed by tariff threats.
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