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.
As expected, the meeting today had an outcome...Bank Negara Malaysia decided to raise the Overnight Policy Rate (OPR) to 3.25%. The 25 basis points increase is the first in 3 years and has been expected by the market.
The floor and ceiling rates of the corridor for the OPR has increased to 3% and 3.5% respectively.
The Monetary Policy Committee believes that the country economy is going for a steady growth part.
As to inflationary pressures, it said inflation has been relatively stable as the effects of the price adjustments for utilities and energy continue to moderate.
Demand driven inflation remains contained.
“Looking ahead, inflation is, however, expected to remain above its long-run average due to the higher domestic cost factors.”
The increased in OPR will eventually effect commercial banks' Base Lending Rate. It will be interesting to see how the effect will impact the household in the country.
The floor and ceiling rates of the corridor for the OPR has increased to 3% and 3.5% respectively.
The Monetary Policy Committee believes that the country economy is going for a steady growth part.
As to inflationary pressures, it said inflation has been relatively stable as the effects of the price adjustments for utilities and energy continue to moderate.
Demand driven inflation remains contained.
“Looking ahead, inflation is, however, expected to remain above its long-run average due to the higher domestic cost factors.”
The increased in OPR will eventually effect commercial banks' Base Lending Rate. It will be interesting to see how the effect will impact the household in the country.
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