KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Hyundai Motor posted a 16% drop in Q2 operating profit, hit by rising U.S. tariffs on vehicles and auto parts. The company warned that the financial pressure from tariffs will intensify in Q3, especially as it awaits clarity on trade negotiations with the U.S.
Q2 Financial Highlights
Operating Profit: ₩3.6 trillion (~$2.64B)
Down from ₩4.28T YoYSlightly above analyst consensus (₩3.5T, LSEG SmartEstimate)Revenue: ₩48.3 trillion
+7% YoYBeat consensus of ₩47TTariff Impact (Q2): ₩828 billion (~$606M)
Tariff Pressure Mounts
Hyundai said U.S. tariffs are costing more and will weigh heavier in Q3.
Current tariff: 25% on Korean vehicles
Hopes for reduction to match Japan’s new 15% rate, but no guarantee yet.
Talks with U.S. Treasury delayed, raising more uncertainty.
Market Exposure & Strategy
40%+ of Hyundai’s revenue comes from the U.S.
~66% of U.S. sales are from imported vehicles.
Hyundai kept U.S. prices flat in Q2, absorbing higher costs to maintain sales (+10% YoY in U.S. retail units).
Plans to:
Adjust prices dynamically
Explore alternate sourcing for parts
Expand local U.S. production in the long run
Investor Reaction & Analyst Sentiment
Shares fell 2% post-earnings.
Analysts caution: Hyundai needs to communicate clearly on its tariff mitigation strategy.
Ongoing silence on trade policy leaves foreign investors nervous, said Shin Yoon-chul of Kiwoom Securities.
Analyst Takeaway:
Hyundai’s strong revenue and U.S. sales growth are positives.
But margin pressure from tariffs is real, and Q3 will be a key test.
Trade deal outcomes with the U.S. could significantly reshape the company’s cost structure and investor confidence.
FX tailwinds (weaker KRW) helped this quarter, but may not be a reliable cushion going forward.
Bottom Line:Hyundai is caught in the crossfire of global trade tensions. Until there’s clarity on tariffs, expect volatilityin earnings and share price. Strategic actions on localization and pricing flexibility are crucial to weather the storm.
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