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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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Bank of Japan Raises Interest Rates and Unveils Bond Taper Plan

 

The Bank of Japan (BOJ) raised interest rates on Wednesday and introduced a detailed quantitative tightening (QT) plan, marking a significant step towards phasing out a decade of massive stimulus.

Key Decisions:

  • Interest Rates: BOJ raised the overnight call rate target to 0.25% from 0%-0.1%, a level not seen since 2008.
  • Quantitative Tightening: The BOJ will halve its monthly bond purchases to ¥3 trillion (RM90.56 billion) starting January-March 2026, down from ¥6 trillion.

Market Reaction:

  • Currency: The yen initially rallied 0.8% to a three-month high of 151.58 per dollar but later reversed gains.
  • Bonds: Yields on 10-year Japanese government bonds fell slightly following the announcement.

Economic Outlook:

  • The BOJ cited broadening wage hikes and rising import prices as reasons for the rate increase.
  • The decision aligns with rising inflation expectations and a need for vigilant inflation risk management.

Comments from Economists:

  • Fred Neumann, chief Asia economist at HSBC, noted, "The BOJ is on course to tighten further, with another interest hike likely by the start of next year."

Projections and Future Plans:

  • The BOJ's quarterly outlook maintained the projection that inflation would stay around 2% through fiscal 2026.
  • Governor Kazuo Ueda is expected to further explain the decision at a press conference.

Context:

  • The decision comes as the US Federal Reserve considers cutting interest rates, potentially reversing its aggressive rate-hike cycle.
  • The BOJ had ended negative rates and bond yield control in March, shifting away from its radical stimulus programme.

The BOJ's move is seen as a decisive step in normalizing monetary policy, signaling a potential path for further rate hikes if economic conditions continue to align with their projections.

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