KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
US consumer spending rose slightly less than anticipated in August, indicating a potential moderation in economic growth for the third quarter. However, economic expansion remains likely, as the goods trade deficit narrowed by the largest margin in nearly two years, according to data from the Commerce Department.
Consumer spending, which makes up more than two-thirds of US economic activity, increased by 0.2% in August, following a 0.5% rise in July. Economists had expected a 0.3% increase. The spending was mainly driven by services, such as housing, healthcare, and recreation, with a decline in goods spending, especially in motor vehicles and parts. Despite these declines, higher incomes and savings are supporting consumer spending through the rest of the year.
Inflation, measured by the Personal Consumption Expenditures (PCE) price index, rose by 0.1% in August, in line with forecasts, marking the smallest annual increase since February 2021. Over the 12 months through August, the PCE price index increased 2.2%, down from 2.5% in July. Core inflation, which excludes food and energy, rose 2.7% year-on-year, just above the Federal Reserve's 2% inflation target.
Despite the moderate rise in inflation and spending, economists do not believe the data will push the Federal Reserve towards a more aggressive 50 basis-point rate cut in November. Investors had hoped for another significant reduction in interest rates, but current expectations have shifted towards two 25 basis-point cuts in November and December, according to Olu Sonola, head of US economic research at Fitch Ratings.
Meanwhile, the goods trade deficit contracted by 8.3% in August, dropping by US$8.6 billion to US$94.3 billion, the largest decline since November 2022. This reduction was driven by a 1.6% fall in imports and a 2.4% increase in exports, adding to expectations of economic growth for the third quarter.
Overall, the data suggests that US economic growth remains strong, with third-quarter GDP growth estimates around 2.9%. The economy had expanded at a 3.0% rate in the second quarter of 2024.
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