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.
Malaysia's manufacturing sector experienced further easing in September, with production levels moderating and new order growth remaining tepid, according to the latest report from S&P Global.
The seasonally-adjusted Manufacturing Purchasing Managers’ Index (PMI) fell to 49.5 in September, down from 49.7 in August. A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 signifies contraction.
Usamah Bhatti, an economist at S&P Global, noted that economic growth in the third quarter has continued along a trajectory similar to that observed in the second quarter. “Sentiment stayed positive, with firms expecting higher output in the coming year,” he stated.
Economic Context and Factory Activity Trends
Malaysia's economy accelerated with a 5.9% growth in the second quarter compared to the previous year, driven by stronger household spending, business investments, and exports. However, factory activity has now declined for the fourth consecutive month, attributed to weak domestic demand despite ongoing activity in export-oriented factories.
While total manufacturing output has decreased since May, new export orders have risen for the sixth month in a row, indicating stronger demand across Southeast Asia. S&P Global observed that while surveyed firms cited weak client confidence due to domestic economic challenges, overseas demand remained robust.
Despite the challenges, manufacturer sentiment has improved, bolstered by expectations of better demand conditions. Confidence levels have strengthened, reaching the highest point since the beginning of the year, as firms remain hopeful for output growth in the upcoming year.
As Malaysia navigates these economic dynamics, the manufacturing sector's performance will be crucial in shaping the broader economic landscape in the months ahead.
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