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
Big tech stocks surged in late trading on Wednesday, led by Tesla Inc's 9% rally following strong earnings results that kicked off the "Magnificent Seven" earnings season. Despite recent volatility, Wall Street showed signs of rebounding, with a US$300 billion exchange-traded fund tracking the tech-heavy Nasdaq 100 gaining after hours.
Tesla's impressive performance came as the company forecast higher vehicle deliveries for the full year, boosting investor confidence and setting the stage for further gains in the tech sector.
"Earnings season is heating up, and we believe there is continued upside for stocks, especially now that we're entering a seasonally strong period," said David Laut from Abound Financial.
After last week’s stock rally to new all-time highs, equities have taken a breather, with investors weighing near-term risks such as big tech earnings, the October payrolls report, the US election, and the upcoming Federal Reserve meeting.
Bond yields rose as the market priced in expectations that the Fed would take a measured approach to rate cuts. The 10-year Treasury yield increased by three basis points to 4.23%, while the dollar strengthened, and the yen hit its lowest level in nearly three months, raising concerns about potential intervention by Japan.
Analysts, including Jonathan Krinsky at BTIG, noted that equities are beginning to react to movements in bonds and the dollar, signaling potential pre-election jitters.
“While we continue to see downside risk for equities over the coming weeks, the longer-term market outlook remains solid,” added Daniel Skelly from Morgan Stanley Wealth Management.
With Tesla leading the charge, investors are now closely watching the next tech earnings reports to gauge the market's direction as volatility is expected to persist in the run-up to key events in November.
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