KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
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Wall Street's main indexes fell on Wednesday, as rising US Treasury yields and losses in McDonald's and Coca-Cola impacted investor sentiment. The 10-year Treasury yield climbed to a three-month high, raising concerns over the potential size of future Federal Reserve interest-rate cuts, as strong economic data suggests a less dovish stance from the central bank.
"When you get a 10-year Treasury yield at 4.25%, it pressures the stock market, slowing down the rally and causing some nervousness," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
Rate-sensitive growth stocks were among the hardest hit, with Nvidia down 1.8% and Apple slipping 0.5%. The tech-heavy Nasdaq saw a 0.47% decline, while the S&P 500 and Dow Jones also fell by 0.34% and 0.57%, respectively.
McDonald's slumped 6.1% following an E. coli outbreak linked to its Quarter Pounder hamburgers, which resulted in one death and multiple illnesses, dragging down the Consumer Discretionary sector by 0.7%. Coca-Cola also dipped 2.7% despite reiterating its annual profit growth forecast, contributing to the market's downturn.
On the positive side, Texas Instruments rose 4% after beating profit forecasts, and AT&T gained 1% on stronger-than-expected subscriber growth. However, Qualcomm dropped 2.7% following reports that Arm Holdings may cancel its license to use chip-design intellectual property.
Investors are keeping a close watch on the Fed’s Beige Book and remarks from Fed official Thomas Barkin for further insights into the central bank’s outlook. Additionally, market volatility may increase due to the upcoming US presidential election, with concerns that a second Donald Trump administration could boost spending, widen the fiscal deficit, and drive inflation higher.
Despite the day's declines, the overall earnings season has been strong, with 83% of S&P 500 companies reporting earnings that exceeded estimates, according to LSEG data. However, the combination of a changing monetary policy outlook and political uncertainty could challenge the market's recent highs.
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