KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Global stocks dipped slightly on Tuesday, paring early gains, while US bond yields declined. Investors are focused on upcoming economic data and corporate earnings, moving beyond the recent news of US President Joe Biden ending his re-election bid.
Key Developments
Corporate Earnings:
- Alphabet and Tesla: Alphabet reported better-than-expected results post-market, while Tesla saw a 45% drop in profit due to decreased electric vehicle demand. These results marked the beginning of the quarterly earnings season for the "Magnificent Seven" tech megacaps that have recently driven market gains.
US Economic Data:
- The US core personal consumption expenditures (PCE) index, the Federal Reserve's preferred inflation measure, will be released on Friday. The yield on the benchmark US 10-year notes fell by 0.9 basis points to 4.251%.
Market Performance:
- Global Stocks: MSCI’s gauge of stocks across the globe fell 0.06% to 816.37.
- Wall Street: The Dow Jones Industrial Average dropped 0.14% to 40,358.09, the S&P 500 lost 0.16% to 5,555.74, and the Nasdaq Composite declined 0.06% to 17,997.35.
- Europe: The pan-European STOXX 600 index gained 0.13%, driven by a rally in technology stocks.
- Asia: MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.30% higher at 566.92.
Currency and Commodities:
- US Dollar: The dollar index, which measures the greenback against a basket of currencies, gained 0.14% at 104.45. The euro fell 0.37% to $1.0849, and the yen strengthened by 0.9% to 155.63 per dollar.
- Oil Prices: Crude oil prices fell by about 2% to a six-week low on rising expectations of a ceasefire in Gaza and growing concerns about demand in China. Brent futures declined 1.7% to $81.01 a barrel, and US West Texas Intermediate crude closed 1.8% lower at $76.96.
- Gold: Gold prices edged up, with spot gold increasing 0.43% to $2,407.87 an ounce. US gold futures rose 0.43% to $2,402.40 an ounce.
- Cryptocurrencies: Bitcoin fell 3.60% to $65,698, and Ethereum declined 0.48% to $3,473.
Market Sentiment
"The market is in the show-me-the-money stage where it's about the earnings being delivered," said Wasif Latif, the chief investment officer of Sarmaya Partners. Investors are cautious, waiting for concrete earnings results to validate recent market gains. The strong performance earlier this year has already factored in much of the positive news, whether it’s earnings-related or rate-cut related.
Political Context
US Vice President Kamala Harris will campaign in Wisconsin on Tuesday after securing support from a majority of delegates to the Democratic National Convention, making her the presumptive nominee for the party.
Conclusion
As markets navigate through the earnings season and anticipate key economic data, the overall sentiment remains cautious but hopeful. Investors are looking for clear signals from corporate earnings and economic indicators to guide their next moves.
Comments
Post a Comment