KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Asian markets saw a broad rally on Monday, with the Indonesian rupiah and Malaysian ringgit leading the gains, following Federal Reserve Chair Jerome Powell's indication that the U.S. central bank is likely to cut interest rates next month. Powell's comments at the Jackson Hole symposium have fueled investor optimism, driving emerging market currencies and stocks higher.
Key Takeaways:
Currency Strengthening: The Indonesian rupiah surged by as much as 1.3% against the U.S. dollar, reaching its highest level since September 2023. The Malaysian ringgit, which has been the region’s best-performing currency this year, gained 0.8%, hitting levels not seen since mid-February 2023.
Stock Market Gains: In Indonesia, the Jakarta Composite Index rose by 0.9% to a record high, reflecting strong investor sentiment. Malaysia’s benchmark index also advanced, albeit modestly, by 0.1%.
Powell’s Impact: Powell’s speech last Friday signaled a likely shift towards a rate cut in September, which has weakened the U.S. dollar and bolstered risk appetite in global markets. This dovish stance has particularly benefited emerging Asian markets, where currencies and equities have seen gains.
Regional Central Bank Policies: Despite the Fed’s dovish tilt, analysts caution that some Asian central banks might delay monetary easing due to domestic concerns such as financial stability risks, inflation, and currency pressures. For instance, Bank Negara Malaysia is expected to keep its policy rates on hold, which has supported the ringgit.
Mixed Regional Performance: While the rupiah and ringgit led the gains, other regional currencies and stocks showed mixed performance. South Korea’s won inched up 0.1%, though its stock index fell 0.3% due to losses in tech giant Samsung Electronics. Taiwan’s dollar strengthened by 0.5%, with stocks up 0.6%, while the Thai baht slipped 0.3%.
Economic Updates: In other regional developments, Thailand reported a 0.4% year-on-year drop in employment for the second quarter, driven by a decline in farm jobs. Meanwhile, the World Bank forecasted Vietnam’s GDP growth at 6.1% for 2024 but warned of risks from bad loans.
Conclusion: The positive momentum in Asian markets, driven by Powell’s dovish comments, highlights the interconnectedness of global monetary policies and their impact on emerging markets. However, regional central banks may tread cautiously, balancing domestic economic conditions with global trends.
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