KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
A sharp rebound in Chinese stocks is prompting a shift in global portfolios, with some investors rushing to take advantage of the rally. After Beijing's recent stimulus measures, money that had flowed into stocks from Japan and Southeast Asia is now being redirected back into Chinese equities, according to market analysts.
Shares in South Korea, Indonesia, Malaysia, and Thailand saw net outflows last week, while BNP Paribas SA reported that more than $20 billion was withdrawn from Japanese equities in the first three weeks of September. The MSCI China Index has climbed more than 30% from a recent low, fueled by Beijing's policy-driven recovery efforts.
Eric Yee, senior portfolio manager at Atlantis Investment Management in Singapore, said, “We are trimming our long positions across Asia to fund China purchases. Everyone is doing so. It’s a good policy-driven recovery from rock bottom.”
Despite the recent rally, Chinese stocks remain attractively priced. The MSCI China gauge is trading at 10.8 times forward earnings, below its five-year average of 11.7 times. Mutual funds globally still have a 5% allocation in Chinese equities, the lowest in a decade, which signals potential for further reallocation into China.
While this shift is still in its early stages, analysts like Mohit Mirpuri of SGMC Capital believe China could be the standout performer by the end of 2024, with momentum that is "hard to ignore."
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