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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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BofA Strategist Hartnett Recommends Bonds and Gold Amid Bubble Risks

The euphoria in equity markets following the Federal Reserve’s interest-rate cut is raising the risk of a market bubble, making bonds and gold attractive hedges against potential recession or renewed inflation, according to Bank of America Corp's Michael Hartnett.

Hartnett, who has been bearish on stocks and expressed a preference for bonds in 2024, warned that current stock market valuations are pricing in Fed easing and anticipating an 18% earnings growth for the S&P 500 by the end of 2025. While this outlook forces investors to chase the rally, Hartnett cautioned that bubble risks are resurfacing and advised investors to buy the dip in bonds and gold.

Additionally, Hartnett recommended international stocks and commodities as potential plays on a soft economic landing, noting that international equities are currently cheaper and beginning to outperform US peers. Commodities also serve as a hedge against inflation.

Global stocks rallied after the Fed's 50-basis-point rate cut, pushing the S&P 500 back to record highs, while the Nasdaq 100 saw its best day in over a month. However, on Friday, US stock futures edged lower, and Europe’s benchmark index fell 0.7%, indicating some caution.

Hartnett has previously warned about the risk of a bubble in tech stocks, particularly amid the growing AI frenzy.

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