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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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Dollar Weakens Amid Growing Bets on Aggressive Fed Rate Cut

The US dollar is hovering near its lowest levels of the year, driven by market wagers on a potentially significant interest rate cut from the Federal Reserve, which could mark the beginning of a new easing cycle. As expectations build for a 50 basis points cut, the dollar's position is increasingly precarious.

The euro remained close to its yearly high, trading around US$1.1132, while the yen eased to 140.71 after briefly strengthening on Monday. The yen, which has fallen the most this year, may see a rally if the Fed takes a dovish turn.

Market speculation intensified after reports suggested a more aggressive rate cut, with Fed funds futures now indicating a 65% probability of a 50 basis point cut, up from 30% just a week ago. Jane Foley, a senior forex strategist at Rabobank, noted that any sign of weakness in upcoming US economic data would likely reinforce these expectations.

Macquarie strategists commented that, regardless of whether the Fed opts for a 25 or 50 basis point cut, the central bank's tone is expected to be "dovish," potentially weakening the dollar further, particularly against the yen. The contrast between the Fed's outlook and that of the Bank of Japan (BOJ), which may hint at future interest rate hikes, is likely to remain stark.

Meanwhile, sterling has led gains against the dollar, rising 3.9% this year, buoyed by Britain's resilient economy and persistent inflation. The pound broke above US$1.32 on Monday and is expected to maintain strength as the Bank of England meets later this week.

The Australian and New Zealand dollars also saw gains, trading at US$0.67555 and US$0.6198 respectively, as traders focused on the Fed’s upcoming decisions rather than China’s economic challenges.

The US dollar index held steady at 100.7, close t

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