KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
In August, US companies announced 75,891 layoffs, nearly three times the number in July and marking the largest month-to-month increase in a year, according to outplacement firm Challenger, Gray & Christmas. This surge, driven primarily by the technology sector, reflects growing economic uncertainty and rising operational costs.
Key Takeaways:
Significant Increase in Layoffs: The surge in layoffs to 75,891 in August represents the highest number since March, with technology firms accounting for more than half of the cuts, totaling 39,563 layoffs. This is a substantial jump from around 6,000 in July and marks the most significant reduction since January 2023. The health sector followed with 6,158 layoffs announced.
Economic Uncertainty and Market Dynamics: The rise in job cuts is attributed to economic uncertainty and shifting market dynamics. Companies are facing increased pressures from rising operational costs and concerns over a potential economic slowdown, prompting tough decisions around workforce management.
Potential Federal Reserve Response: The recent trend of increasing layoffs and a rising unemployment rate has raised concerns among Federal Reserve policymakers. This could lead to anticipated interest rate cuts this month to prevent further deterioration in the job market.
Despite the sharp increase in layoffs for August, total year-to-date announced staff reductions remain down by 3.7%, reflecting the complex and evolving economic landscape.
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