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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Asian Currencies and Stocks Rally Ahead of Fed Decision

 

Emerging Asian currencies and stocks saw gains on Wednesday as investors anticipated the US Federal Reserve’s policy decision later in the day. Meanwhile, the yen experienced volatility following the Bank of Japan’s (BOJ) rate hike.

Key Points:

  1. Currency Movements:

    • The South Korean won and the Thai baht led currency gains, rising by 0.6% and 0.5% respectively.
    • Other Asian currencies like the Singaporean dollar, Philippine peso, and Malaysian ringgit traded flat to 0.3% higher.

  2. US Federal Reserve Decision:

    • Investors are keenly awaiting the Fed’s decision, with markets largely expecting the central bank to maintain current interest rates.
    • There is significant attention on any commentary regarding a potential rate cut in September.

  3. Bank of Japan’s Rate Hike:

    • The BOJ raised its short-term interest rate target to 0.25% and outlined a plan for quantitative tightening.
    • This decision caused the yen to fluctuate, initially pushing it to its highest in a week before it pared gains.

  4. Market Reactions:

    • “The elephant in the room is JPY (the Japanese yen), which has been highly volatile,” noted Duncan Wrigley, chief China+ economist at Pantheon Macroeconomics.
    • Analysts suggest the Fed's potential rate cuts could pave the way for Asian central banks to ease their policy stances.

  5. Equity Markets:

    • Most emerging Asian equity markets saw gains. Chinese stocks surged by about 1.9%, driven by investor optimism from a Politburo meeting emphasizing the need to boost consumption.
    • Bourses in Thailand, Philippines, Malaysia, and Indonesia traded higher, with gains ranging between 0.1% and 0.8%.

  6. Expectations and Outlook:

    • Jonathan Koh, an economist at Standard Chartered, suggested that while some Asian central banks might follow the Fed in cutting rates, the overall interest rate differential may not significantly favor Asian currencies.
    • Investors are also watching for inflation data from Indonesia and South Korea this week to assess the stance of their central banks.

Highlights:

  • The Reserve Bank of India is expected to hold rates in August, with the first cut anticipated in Q4.
  • The Philippines central bank projects July inflation to be between 4.0% and 4.8%.
  • China's July factory activity shrank, while services grew at a slower pace.



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