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.
The European Central Bank (ECB) is poised to deepen its global monetary easing efforts with an interest-rate cut, which had been all but ruled out just a month ago. Economists predict that the third quarter-point reduction in this cycle will be part of a broader strategy to counter the sluggish eurozone economy, which is grappling with the impact of high borrowing costs.
The ECB’s move is expected to signal a shift toward a more aggressive easing strategy aimed at stimulating growth, with global financial markets anticipating a rate cut after recent survey data highlighted a contraction in the private sector.
ECB President Christine Lagarde is expected to address these changes during a press conference on Thursday following the meeting near Ljubljana, Slovenia. The focus will be on how the ECB plans to move forward with further cuts and what significant developments occurred since the September meeting.
Initially, officials had nearly ruled out an October cut. However, Slovakian central bank governor Peter Kazimir, who initially pushed for waiting until December for any further moves, now stands alone in arguing against the rate cut.
Looking ahead, economists believe that the ECB will quicken its pace of easing to reduce borrowing costs further, bringing them to a more neutral level by the end of 2025, according to a Bloomberg survey.
In addition to the ECB's decision, economists are keeping a close watch on other global events. Chinese economic data is expected to show continued underperformance, while inflation in the UK may drop below 2% for the first time in over two years. Meanwhile, central banks in Southeast Asia and Chile are also slated to announce their rate decisions this week.
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