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
Wall Street's main indexes rose on Tuesday, with the S&P 500 nearing its intraday record high as investors awaited a critical Federal Reserve policy decision. Fresh economic data, including an unexpected rise in retail sales for August, helped ease concerns about a sharp economic slowdown in the US.
The Commerce Department reported that retail sales rose last month despite a decline in auto dealership receipts, supported by strong online purchases, indicating the economy's solid footing through much of the third quarter.
Rate-sensitive growth stocks performed well, with Alphabet and Tesla gaining 1.0% and 1.90%, respectively, while Nvidia added 0.44%, boosting the broader chips index by 0.60%. Microsoft also lifted the S&P 500 with a 2.3% rise after announcing a new US$60-billion share buyback program and increasing its quarterly dividend by 10%.
At 09:49am ET, the Dow Jones Industrial Average rose 78.70 points (0.19%) to 41,706.55, the S&P 500 gained 21.50 points (0.38%) to 5,654.59, and the Nasdaq Composite climbed 126.91 points (0.72%) to 17,719.03. The blue-chip Dow traded at a record high, while the Russell 2000 index, which tracks small caps that tend to benefit in a low-interest-rate environment, advanced by 0.71%.
Seven of the 11 S&P 500 sectors were in positive territory, led by a 1% rise in Consumer Discretionary stocks.
Traders are currently betting on a 65% probability that the Fed will opt for a 50 basis point rate cut, with a 35% chance of a smaller 25-basis-point reduction, according to the CME Group's FedWatch Tool. Investors are focused on comments from former policymakers and recent signs of a cooling labor market.
"Retail sales being higher is suggestive that the economy is modestly better," said Michael Green, chief strategist at Simplify Asset Management. He noted that while underlying data is mixed, markets are in a "holding pattern" ahead of Fed Chair Jerome Powell's remarks.
Despite September's historical weakness for US equities, with the S&P 500 averaging a 1.20% decline since 1928, the index is up about 0.20% so far this month. Meanwhile, a survey from BofA fund managers showed improved global investor sentiment for the first time since June, fueled by optimism around a soft landing and potential rate cuts by the Fed.
Among other market movers, Intel rose 2.3% after announcing that Amazon.com's cloud services unit will use its custom artificial intelligence chips, while Amazon.com gained 2%. Viasat dropped 6.1% following a downgrade by JPMorgan from "overweight" to "neutral."
Advancing issues outnumbered decliners by a 2.93-to-1 ratio on the NYSE and by a 2.32-to-1 ratio on the Nasdaq. The S&P 500 posted 30 new 52-week highs and no new lows, while the Nasdaq Composite recorded 62 new highs and 27 new lows.
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