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.
Malaysia’s consumer and construction stocks are poised to benefit from Budget 2025, as Prime Minister Datuk Seri Anwar Ibrahim is expected to introduce measures aimed at lowering the cost of living and unveiling infrastructure projects. As both Prime Minister and Finance Minister, Anwar will likely announce targeted cash transfers, civil servant salary hikes, and potential revisions to the minimum wage to boost disposable incomes, supporting retailers like AEON Co and Padini Holdings.
In the construction sector, analysts expect the budget to include new projects such as the Mass Rapid Transit Line 3 and Pan Borneo Highway, with companies like Gamuda, Sunway Construction, and IJM Corp set to benefit. There could also be updates on the Johor-Singapore High-Speed Rail and cross-border economic zones, reigniting interest in the sector.
The government’s commitment to growing semiconductor industries may lead to support measures for data center developers like YTL Power International and tech firms such as Inari Amertron and Unisem.
For the property sector, more initiatives to aid first-time homebuyers and affordable housing schemes are expected, benefiting developers like Lagenda Properties and Mah Sing Group.
On the currency front, traders will be monitoring the budget for cues that may spark a ringgit rebound, especially if the government successfully balances economic growth with petrol subsidy cuts. In terms of government bonds, analysts predict a modest impact, with the fiscal deficit expected to fall to 3.9% in 2025, and a slight reduction in net bond issuance.
Source: theedgemalaysia
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