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
Swiss watchmakers are calling on the Swiss National Bank (SNB) and the government to support exporters by addressing the strength of the Swiss franc, which they say is contributing to a slump in overseas sales.
“With inflation currently well below 2%, the Swiss National Bank has room to manoeuvre and act on the foreign exchange market,” stated the Federation of the Swiss Watch Industry and the Employers Federation of the Swiss Watch Industry on Tuesday. They suggested a "more reactive approach" could help reduce the franc's volatility.
The watch industry, which includes prestigious brands like Rolex, Patek Philippe, Swatch Group, and Richemont, is a vital part of the Swiss economy, accounting for 55% of GDP through exports and employing about 65,000 people across 700 companies. However, it is now grappling with a 2.4% decline in watch exports during the first seven months of 2024, following record shipments in the past three years.
Several watch brands and components makers have resorted to government-supported work reductions to avoid permanent job cuts as demand wanes. Subcontractors and makers of entry-level and mid-range priced watches are feeling the most pressure from the drop in demand, with negative forecasts for the end of 2024 posing significant challenges for some sector players.
This plea from watchmakers follows a similar call from the Swissmem technology manufacturers' association last month, highlighting the impact of the franc's appreciation on export recovery efforts. Despite two interest rate cuts by the SNB, the franc is nearing its all-time high against the euro, a level last reached in late 2023.
The SNB's next rate decision is scheduled for Sept 26. While the franc's strength has helped keep Swiss inflation in check, with rates significantly lower than those in the eurozone, watchmakers and other exporters argue that further measures are needed to stabilize the currency and protect their industries from further harm.
In response to falling demand, many watch companies have turned to short-time working, extended summer closures, and job cuts, as the industry braces for potentially "highly problematic" conditions towards the end of 2024.
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