KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
European stock futures climbed after the US and European Union reached a trade deal that eased investor worries about escalating tariffs.
The agreement, announced by US President Donald Trump and European Commission President Ursula von der Leyen, will see the EU face 15% tariffs on most exports, including cars. Pharmaceuticals and metals are excluded from the deal.
By early Monday in Paris, Euro Stoxx 50 futures rose 1%, while Germany’s DAX futures also gained about 1%. The euro edged up to $1.1752.
“This is exactly what markets needed — visibility. The risk of tariff escalation is now off the table,” said John Plassard, head of investment strategy at Cité Gestion. “For investors, that’s not just relief; it’s a green light.”
Key Sectors to Watch
Automakers: Stellantis, Volkswagen, Mercedes-Benz, BMW, and suppliers like Valeo and Pirelli are expected to benefit.
Luxury Brands: LVMH, Kering, and Salvatore Ferragamo may see gains as North America is a major market.
Drinks & Shipping: Companies like Diageo, Remy Cointreau, Pernod Ricard, and shipping giants A.P. Moller-Maersk and Hapag-Lloyd are also in focus due to their tariff exposure.
Market Reaction
European stocks have been stuck in a narrow range since May because of trade worries. Analysts expect this deal to spark a “relief rally” as earnings season continues. However, some warn the optimism may be short-lived until full details of the agreement are released.
“There’s a chance we see a morning jump, but the devil is in the detail,” said Neil Birrell, CIO at Premier Miton Investors.
Why It Matters
Removes a major trade uncertainty for Europe.
Could boost auto and consumer goods sectors.
May shift focus to potential US trade talks with Canada and Mexico.
For now, investors are welcoming the deal as a step away from trade tensions and toward stability in global markets.
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