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.
Asian shares are expected to decline on Tuesday, following Wall Street's dip after a record-setting rally. Futures in Hong Kong, Shanghai, and Sydney pointed to losses, while Tokyo looked poised for modest gains. This comes after the S&P 500 fell 0.2% and the Dow Jones Industrial Average slid 0.8%, with most sectors except technology moving lower.
A key focus is on the S&P 500, which has gone about 30 sessions without consecutive losses, a streak that ranks among the best since 1928, despite concerns over the index being overbought. According to Dan Wantrobski, director of research at Janney Montgomery Scott, the index remains vulnerable to short-term profit-taking.
US 10-year Treasury yields jumped by 11 basis points to 4.20%, with Australia’s 10-year yield rising by 9 basis points. T Rowe Price’s Arif Husain predicts that yields could test the 5% threshold in the next six months due to rising inflation expectations and fiscal spending concerns.
Meanwhile, in Asia, attention remains on China’s economic stimulus efforts. The country continues to cut benchmark lending rates to halt a housing market slump, as Chinese banks ease lending following the central bank's move in late September. In Japan, traders are watching the upcoming election this weekend, where support for Prime Minister Shigeru Ishiba’s coalition is softening.
This week also marks a crucial period for Wall Street, with 20% of S&P 500 companies set to report earnings. Investors are gearing up for key results from Tesla, Boeing, and United Parcel Service (UPS).
In commodities, oil prices climbed on Monday as China moved to support its economy and traders monitored risks from Middle East tensions, but prices were steady early on Tuesday.
Volatility remains elevated across stocks, bonds, and currencies, with investors seeking protection amid global uncertainties, including geopolitical risks, earnings reports, and interest rate decisions in the US and Europe.
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