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.
Amid a turbulent week in the markets due to Middle East tensions, Indian investors set a new record, purchasing $1.53 billion in shares during Thursday's selloff, the largest since August. This marked the third time in 2024 that domestic buyers poured over $1 billion into the market in a single day, helping to absorb most of the $1.8 billion in stocks offloaded by foreign investors.
The Nifty index is on track for its biggest weekly decline in over two years, yet domestic institutions continue to capitalize on market dips, demonstrating their resilience and influence during times of global volatility.
In other sectors, BSE and brokerage Angel One outperformed Thursday's selloff, despite concerns over the impact of SEBI's options trading curbs. While premium turnover has stagnated, some analysts expect trading volumes from discontinued NSE contracts to shift to BSE, providing a potential upside.
Meanwhile, the recovery in consumer staples stocks has been called into question following a weak quarterly update from Dabur. Upcoming earnings from Hindustan Unilever, Nestle India, and Britannia will be crucial in determining the sector's future performance.
On the monetary front, Nomura Holdings sees a 55% chance of a 25 basis points rate cut by the Reserve Bank of India (RBI) due to slowing growth and weak loan demand. A rate cut could extend the rally in Indian bonds, already among the top performers in Asia this year.
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