Local stocks hit their lowest levels on Tuesday after a temporary initial recovery as investors watched developments regarding US trade tariffs and the countries involved.
The FBM KLCI hovered around 1,450 and faced a momentary loss of confidence and weakness in midday trading, breaking slightly lower at 1,442.82.
Shares in the technology, plantation and financial services sectors reversed gains.
The Plantation Index fell 1.1%, while the Technology Index, which surged more than 5% in the morning session, fell 0.8% and the Energy Index fell 0.5%.
Investors are now focused on negotiations with the Trump administration regarding the implementation of punitive tariffs by the United States on almost all of its major trading partners and the implications arising from it.
China, Malaysia's largest trading partner, on Tuesday vowed to retaliate and will 'fight to the end' against the tariffs.
The statement came after US President Donald Trump threatened to impose an additional 50% levy on imports from China if Beijing fails to roll back a 34% tariff hike that took effect on Wednesday.
These latest geopolitical developments have the potential to increase uncertainty in the local market, especially for sectors that rely on export activities.
