KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
The International Monetary Fund (IMF) has reduced its global growth forecast for 2025, citing increasing risks from geopolitical tensions and trade protectionism. Global output is now expected to expand by 3.2%, which is 0.1 percentage point lower than the IMF's previous estimate in July.
Meanwhile, in North America, the Bank of Canada took bold action, cutting its benchmark interest rate by 50 basis points to 3.75%, the largest cut since March 2020, signaling the end of the post-pandemic era of high inflation. The move aims to boost growth as inflation expectations trend closer to the target of 2%.
In China, banks also lowered lending rates following easing measures by the central bank, part of an effort to revive economic growth and mitigate the ongoing housing market slump. However, South Korea's economy saw minimal growth last quarter, highlighting the challenges posed by weakening exports and rising geopolitical tensions.
Key risks also loom globally, including the US presidential election, with vastly different economic implications, escalating conflicts in the Middle East, the ongoing Russia-Ukraine war, and tensions in the Taiwan Strait. These issues further complicate the outlook for global growth as the world approaches year-end.
In Europe, the region continues to struggle, with private-sector activity declining for the second consecutive month, particularly in the euro area's largest economies. In contrast, Russia raised its key interest rate to a record high, surpassing levels seen after the invasion of Ukraine, as it battles persistent inflation.
Emerging markets are also feeling the pinch, with Saudi Arabia’s oil revenue dropping to a three-year low, and Colombia seeing a surg
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