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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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Nasdaq Slumps 1% as Big Tech and Chip Stocks Decline Ahead of Key Earnings

The Nasdaq dropped 1% on Tuesday as chip and megacap shares took a hit ahead of Big Tech earnings, while strength in financial stocks kept the Dow afloat in anticipation of a key US Federal Reserve policy decision this week.


Key Highlights:

  • Tech and Chip Stocks:

    • Microsoft, a frontrunner in the AI race, will release its quarterly results after markets close. Its stock was down nearly 1%.
    • Other megacap stocks, including Apple, Amazon.com, Meta Platforms, Alphabet, and Tesla, fell between 0.1% and 2%.
    • Nvidia slumped 5%, leading a decline in chip stocks and pushing the Philadelphia SE Semiconductor index down 2.4%.

  • Market Performance:

    • The Dow Jones Industrial Average rose 65.08 points, or 0.16%, to 40,605.01.
    • The S&P 500 lost 24.87 points, or 0.46%, to 5,438.67.
    • The Nasdaq Composite lost 184.53 points, or 1.06%, to 17,185.68.
    • The S&P 500 Financials index outperformed with a 1.3% jump, and a banking index climbed 1.5%.

  • Investor Sentiment:

    • Investors are cautious ahead of tech earnings scheduled through the week.
    • Coupled with Tesla's disappointing results, Alphabet's higher expenditure forecast caused a broad-based market sell-off last week.
    • "Big Tech has had a great rally and for it to continue, they're going to have to show benefits of AI and the investments they made in it," said Brian Klimke, chief market strategist at Cetera Investment Management.

  • Market Trends:

    • Hopes of early rate cuts have prompted a shift to mid- and small-cap stocks, away from tech-related sectors.
    • The Russell 2000 small-caps index advanced 0.2%, poised to outperform major US stock indices in July, while the Dow is set for its best month in 2024.

  • Federal Reserve:

    • The Fed is expected to hold rates at their highest level in over two decades this week, with traders watching for hints of potential policy easing.
    • The Job Openings and Labor Turnover Survey showed 8.18 million job openings in June, ahead of economists' expectations.

  • Corporate Results:

    • Procter & Gamble slumped 6% after missing expectations for fourth-quarter sales.
    • Merck lost 10% after cutting its annual profit forecast.
    • CrowdStrike shed 9% after a report of Delta Air Lines seeking compensation for a global cyber outage.
    • Cybersecurity and cloud services company shares jumped 11.2% after forecasting fourth-quarter results above estimates.

Market Breadth:

  • Advancing issues outnumbered decliners by a 1.16-to-1 ratio on the NYSE and by 1.31-to-1 on the Nasdaq.
  • The S&P 500 posted 62 new 52-week highs, while the Nasdaq Composite recorded 92 new highs and 80 new lows.

Conclusion: Investors remain cautious ahead of Big Tech earnings and the Federal Reserve's policy decision, influencing market movements and sector performances. The financial sector showed strength, while tech and chip stocks faced declines amid broader market uncertainty.

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