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.
Japanese stocks surged on Monday following the yen's sharp decline against the dollar after a strong US jobs report. The Nikkei 225 Stock Average jumped 2% to 39,408.59, and the Topix index rose 1.5% to 2,735.15 in early trading. The yen fell to 149.13 per dollar, its weakest level since mid-August, after dropping more than 1% on Friday.
The positive reaction stems from the strengthening US economy and a growing rate gap between the US and Japan, according to Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab Co. The Nikkei futures also rose 2.5% following the report showing 254,000 new US jobs in September, the highest in six months, alongside a drop in the unemployment rate.
The yen's weakness benefits export-driven Japanese companies, particularly in the automobile and technology sectors, which were pressured last week by volatility in the currency.
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