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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 Stocks Rally; Yen Volatile Following BOJ Rate Hike

 

Asian stocks surged on Wednesday, and the yen experienced volatility after the Bank of Japan (BOJ) raised interest rates. Investors also digested mixed results from tech giants Microsoft and AMD, highlighting differing impacts within the AI sector.

Key Points:

  • BOJ Rate Hike: The BOJ increased its overnight call rate target to 0.25% from 0%-0.1%. It also announced a quantitative tightening plan to reduce monthly bond buying to ¥3 trillion by early 2026.
  • Market Reaction:
    • Japan's Nikkei index saw choppy trading, ending down 0.19%.
    • Japanese government bond yields fell slightly post-decision.
    • The yen fluctuated but remained flat at 152.81 per dollar, marking over a 5% gain in July.
    • MSCI's Asia-Pacific index outside Japan rose 0.9%.
    • Chinese blue-chip stocks and Hong Kong’s Hang Seng index both increased by about 2%.

Influences on the Market:

  • Oil Prices: Rose from seven-week lows due to Middle Eastern tensions after Hamas reported the killing of its leader Ismail Haniyeh in Tehran.
  • China’s Economy: Data revealed a contraction in China’s manufacturing for the third month in July, sustaining expectations for further economic stimulus from Beijing amid ongoing property crises and job insecurities.

Tech Earnings and AI Sector:

  • Microsoft and AMD: Microsoft’s disappointing earnings impacted its shares and other tech stocks. Conversely, AMD’s strong performance boosted chip stocks, with Nasdaq futures rebounding 0.7%.

Central Bank Focus:

  • Federal Reserve: The Fed's decision is expected later on Wednesday, with markets anticipating a pause in rate hikes but looking for indications of a potential rate cut in September.
  • Interest Rate Speculation: Markets fully price in a 25 basis point cut in September, with an overall 68 bps reduction anticipated for the year.

Currency and Commodity Movements:

  • Dollar Index: The index, measuring the dollar against six other currencies, was at 104.41, down 1.36% for July.
  • Australian Dollar: Dropped to a three-month low following a soft inflation report, reducing expectations for further rate hikes.
  • Oil Prices:
    • US crude rose 1.65% to US$75.98 per barrel.
    • Brent increased 1.49% to US$79.80 per barrel.

Summary:

Asian markets experienced a robust session, with the BOJ's rate hike introducing volatility in the yen. Mixed tech earnings underscored the varied impact of AI investments, while oil prices surged on geopolitical tensions. Central banks remain in focus, with investor attention on the Fed's upcoming rate decisions.

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