KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
Hong Kong's recent uptick in home sales may struggle to maintain momentum due to the city’s weak economic outlook and high interest rates.
According to data from Midland Realty, the number of new home transactions in the seven days following Chief Executive John Lee's policy address increased by 20%, with notable launches like Sun Hung Kai Properties Ltd’s project in Kai Tak boosting sales. Prices for second-hand transactions also saw a slight rise of 0.5% during the same period, per Centaline.
Despite this short-term growth, property agents remain cautious about its sustainability. High borrowing costs and poor economic sentiment are deterring more buyers from entering the market. Interest rates in Hong Kong remain high, with the one-month interbank rate at 4.2%, and almost all new mortgages are tied to floating rates.
“The residential market is greatly affected by interest rates and economic circulation,” said Rosanna Tang, head of research at Cushman & Wakefield plc. The recent stimulus measures, including the government’s easing of mortgage rules in October, which reduced downpayment requirements, have yet to reverse the downward trend in housing prices.
Economic challenges such as sluggish consumption, China’s slowing economy, and geopolitical concerns continue to weigh on Hong Kong. UBS Group AG economists have described the city’s growth outlook as “highly challenging” in the near term.
In the luxury property market, interest has picked up, particularly following the Federal Reserve's rate reduction. High-end property deals and government incentives for wealthy investors under the New Capital Investment Entrant Scheme may help boost the sector, with experts predicting that prices could start to rise by mid-next year. However, much of the mar
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