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.
Chinese stocks surged as mainland markets reopened after the week-long Golden Week holiday, fueled by encouraging home sales, consumption data, and optimism surrounding Beijing's stimulus measures. The CSI 300 Index, a key benchmark for Chinese equities, jumped nearly 11% in early trading, continuing its rally from before the holiday.
Sentiment toward Chinese equities has shifted dramatically since late September, with the government introducing a series of supportive actions, including interest-rate cuts, increased liquidity, and fiscal support for the stock market. Global financial institutions like Goldman Sachs, HSBC, and BlackRock have upgraded their outlooks on Chinese stocks, banking on further stimulus.
A key factor behind the rally has been the recovery in China's housing market. Reports indicated a 50% increase in homebuyer visits to residential projects during the holiday, and other sectors, such as dining and travel, also saw significant gains. Data from Meituan showed in-store and dine-in consumption rising 40%, and passenger trips on China's railway network hit record highs.
Despite this surge, analysts like Aleksey Mironenko from Leo Wealth noted that the sustainability of this rally will depend on additional fiscal policies and actions that are expected to be announced in the coming weeks. Investors are watching closely to see if these policies will provide long-term support or if this is a tactical, short-term rally based on current market conditions.
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