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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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US Job Openings Fall Slightly as Consumer Confidence in Labor Market Declines

 

US job openings fell modestly in June, with data for the prior month revised higher, indicating a gradual slowdown in the labor market rather than a rapid weakening. The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) reported job openings dropped by 46,000 to 8.184 million by the end of June, while May's openings were revised to 8.23 million from the previously reported 8.14 million.

Key Highlights:

  • Job Openings:

    • Job openings fell by 46,000 to 8.184 million in June.
    • May's job openings were revised higher to 8.23 million.
    • Job openings have been steadily declining since hitting a record 12.182 million in March 2022.
    • There were 0.9 job openings for every unemployed person in June, down from 1.1 in May.

  • Industry-Specific Changes:

    • Increases in job openings: accommodation and food services (120,000), state and local government excluding education (94,000).
    • Decreases in job openings: durable goods manufacturing (88,000), federal government (62,000).

  • Hires and Layoffs:

    • Hires declined by 314,000 to 5.341 million, lowering the hires rate to 3.4% from 3.6% in May.
    • Layoffs decreased by 180,000 to 1.498 million, the lowest level since November 2022.
    • Layoffs rate dropped to 0.9% from 1.1% in May.
    • Voluntary quits dropped by 121,000 to 3.282 million, with the quits rate remaining unchanged at 2.1%.

  • Consumer Confidence:

    • The Conference Board survey showed a rise in the share of consumers viewing jobs as "hard-to-get" to 16%, the highest since March 2021.
    • The share of consumers who believed jobs were "not so plentiful" increased to 49.9% in July from 48.8% in June.
    • The labor market differential narrowed to 18.1 from 19.8 in June.

Economic Implications:

  • The labor market's cooling, indicated by reduced hiring rather than layoffs, aligns with subsiding inflation and could support the case for the Federal Reserve to begin cutting rates in September.
  • Fed officials are expected to leave the benchmark overnight interest rate in the 5.25-5.5% range after their current two-day policy meeting, with expectations of potential rate cuts later in the year.

Conclusion: Despite a gradual slowdown in job openings, the labor market remains resilient with modest declines in hiring and layoffs. Consumer confidence in the labor market is waning, reflecting concerns about job availability. These trends will be crucial for the Federal Reserve's upcoming policy decisions.

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