KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
China's manufacturing sector experienced a significant contraction in September, with factory activity shrinking as both domestic and international demand cooled. The Caixin/S&P Global manufacturing PMI dropped to 49.3, down from 50.4 in August, missing analysts' forecasts of 50.5. This marked the lowest reading since July 2023 and indicates a sharp decline in new orders, impacting factory owners' confidence, which is now near record lows.
Despite aggressive government efforts to stimulate economic growth, including lowering interest rates and increasing banking liquidity, new orders—both domestically and abroad—fell sharply. The sub-index for new orders hit its lowest point in two years, signaling weakening demand. Foreign demand also declined at the fastest pace since August last year, with manufacturers attributing the drop to deteriorating global trade conditions.
The United States' tariffs on Chinese products, including electric vehicles (EVs), and the European Union’s pending decision on potential EV tariffs, have contributed to the slowdown in export demand. This has affected manufacturers' optimism, with confidence slipping to the second lowest level since data collection began in April 2012.
The decline in demand also led to reduced input prices and lower export charges as competition intensified. Firms responded by cutting jobs at the fastest rate in five months due to a reduced workload and cost concerns. The Caixin survey mainly covers smaller, export-oriented firms, which have been particularly affected by these economic challenges.
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