KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Equities Overview:
- China and Hong Kong markets experienced significant gains on Monday, buoyed by Beijing’s latest measures aimed at addressing the ongoing property crisis. The CSI 300 index is poised for its largest daily increase in 16 years, while iron ore prices surged as major Chinese cities eased home buying restrictions.
- Conversely, Japanese stocks fell sharply, contributing to a decline in the MSCI Asia Pacific gauge after the leadership victory of Shigeru Ishiba, which caught investors off guard.
Investor Sentiment:
- Matthew Haupt, a portfolio manager at Wilson Asset Management, noted that China’s government appears increasingly committed to stimulating the economy, which may provide a more sustainable rally compared to previous attempts. Investors are keenly awaiting further announcements that could bolster confidence in the Chinese economy and stock market.
European Market Outlook:
- European markets are anticipated to start the week on a subdued note, following profit warnings from major automakers, including Volkswagen AG, Mercedes-Benz Group AG, and BMW AG. Stellantis NV has also cut its outlook for the adjusted operating income margin.
Political Climate:
- The political landscape in Europe adds another layer of uncertainty. In Austria, traditional political parties are pledging to prevent the far-right Freedom Party from forming a government following its significant electoral victory.
Japanese Market Dynamics:
- With Ishiba’s new administration expected to maintain continuity in economic and monetary policy, the yen has slightly regained some ground. However, market optimism remains cautious amid expectations of further policy adjustments.
Geopolitical Concerns:
- The death of Hezbollah leader Hassan Nasrallah has raised concerns about escalating tensions in the Middle East, contributing to fluctuations in oil prices.
Key Market Movements:
- S&P 500 futures showed little change, while Nikkei 225 futures dropped by 5%. In contrast, Hong Kong's Hang Seng surged by 4%, and the Shanghai Composite rose by 8.1%.
- The Bloomberg Dollar Spot Index remained stable, with the euro trading at $1.1168 and the Japanese yen increasing by 0.4% to 141.66 per dollar.
- Crude oil prices rose by 1.1%, reaching $68.91 per barrel, reflecting ongoing geopolitical tensions and market adjustments.
Upcoming Economic Events:
- A series of key economic indicators are scheduled for release, including inflation and manufacturing activity data from the Eurozone, as well as the highly anticipated US nonfarm payrolls report on Friday, which will provide further insights into the Fed's potential policy decisions.
This summary encapsulates the current market landscape as economic dynamics shift in response to both domestic policies and international developments.
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