KUALA LUMPUR, June 22 (Bernama) -- Bursa Malaysia ended on a softer note today as investors engaged in profit-taking following the recent rebound in the local market, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 0.65 per cent, or 11.19 points, to 1,700.84 from last Friday's close of 1,712.03. The benchmark index opened 1.56 points lower at 1,710.47 and moved between 1,699.94 and 1,712.32 throughout the trading session. Market breadth was negative, with decliners outnumbering gainers 560 to 481. A total of 608 counters were unchanged, 1,649 untraded, and 14 suspended. Turnover slipped to 3.29 billion units worth RM2.40 billion from 3.45 billion units worth RM3.79 billion on Friday.
Global markets ended the week on a strong note with significant stock gains and declining US Treasury yields, as investors brace for President-elect Donald Trump's policies, which are expected to include tariffs, tax cuts, and deregulation. Meanwhile, Bitcoin surged near the historic US$100,000 mark.
Market Highlights
US Stocks
- Wall Street Performance:
- Dow Jones: +0.97% to 44,296.51
- S&P 500: +0.35% to 5,969.34
- Nasdaq Composite: +0.16% to 19,003.65
- Sector Movements: Gains were led by industrials, consumer discretionary, financials, and consumer staples, while communication services, utilities, and technology saw losses.
- Key Stock Movement: Nvidia fell 3.2% despite strong earnings due to disappointing sales forecasts.
Global Indices
- Europe: The Stoxx 600 gained 1%, snapping a four-week losing streak.
- MSCI Global Stocks: Up 0.33% to 854.22, with a weekly gain of 1.4%.
Treasury and Currency Markets
- US Yields: The benchmark 10-year Treasury yield slipped 1.4 basis points to 4.418% as markets reassess future Fed rate cuts amidst potentially inflationary Trump policies.
- Fed Rate Cut Odds: A 53% probability of a 25-basis-point rate cut in December.
- Dollar Gains: The dollar index rose 0.43% to 107.52, while the euro dropped to a two-year low of US$1.0414 after weak eurozone manufacturing data.
Commodities
- Bitcoin: Climbed 1.33% to US$99,384, driven by optimism about Trump’s lighter regulatory approach.
- Oil:
- Brent Crude: +1.3% to US$75.17
- WTI Crude: +1.6% to US$71.24
- Gains fueled by the intensifying Russia-Ukraine conflict.
- Gold:
- Spot gold rose 1.37% to US$2,706.39, marking its highest price in two weeks and its biggest weekly gain in over a year.
Economic Data
- US Manufacturing: S&P Global’s US manufacturing gauge rose to 55.3, the highest since April 2022, signaling robust economic activity.
- Eurozone Manufacturing: Fell to a 10-month low of 48.1, reflecting continued economic struggles.
Outlook
Markets are closely monitoring Trump’s policy appointments and potential fiscal moves, including his Treasury secretary pick. While optimism remains high, risks such as inflation resurgence, tariffs, and geopolitical tensions could impact investor sentiment in the weeks ahead.
Conclusion: A strong week for stocks and commodities reflects investor optimism about growth under the incoming Trump administration, even as uncertainties loom over inflation and policy decisions.
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