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.
Germany is experiencing a mild recession and is unlikely to see any economic growth for the rest of 2024, according to a Bloomberg survey of analysts. The poll forecasts a 0.1% contraction in the third quarter, following a similar unexpected decline in the second quarter. Just a month ago, analysts had predicted stagnation for the period between July and September.
This marks a downward revision from the previously anticipated 0.1% growth for the year, but remains slightly more optimistic than the German government’s forecast of a 0.2% contraction. Germany is grappling with several challenges, including the loss of Russian energy supplies, weak export demand from China, difficulties in its automotive sector, and a shortage of skilled workers.
The economic downturn in 2024 could result in the second consecutive year of GDP decline, a rare occurrence since the reunification of West and East Germany in 1990. In 2023, Germany was the only Group of Seven (G7) economy to shrink, with a contraction of 0.3%.
According to Rabobank analyst Erik-Jan van Harn, Germany’s industrial sector remains the key weak point, and there is “no clear catalyst for a turnaround” in the near future. Analysts now expect 0.8% growth in 2025, down from a previous estimate of 1%, while the government forecasts 1.1% growth.
Germany’s economic struggles continue to be a focal point as it contends with internal and external pressures that are hindering its recovery.
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