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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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Goldman Sachs and Morgan Stanley Forecast S&P 500 Target of 6,500 by End-2025

Key Takeaway: Goldman Sachs joins Morgan Stanley in predicting the S&P 500 will hit 6,500 by the end of 2025, driven by US economic growth, corporate earnings expansion, and Fed rate cuts.

Goldman Sachs has projected a 10.3% upside for the S&P 500 from its last close of 5,893.62, aligning with Morgan Stanley's forecast. The bullish outlook comes as US corporate earnings are expected to grow by 11%, alongside a real GDP growth rate of 2.5% in 2025.



Key Drivers of Growth

  1. Broad Earnings Expansion:
    Both firms expect earnings growth to remain robust, fueled by improving business cycle indicators and the Federal Reserve's anticipated rate cuts.

  2. 'Magnificent 7' Stocks:
    Goldman predicts continued outperformance by Amazon, Apple, Alphabet, Meta, Microsoft, Nvidia, and Tesla. However, the margin of outperformance is expected to narrow, with the "Magnificent 7" outpacing the rest of the S&P 493 companies by only 7 percentage points, the slimmest margin in seven years.

  3. Macro and Micro Factors:
    Goldman notes that micro-level earnings strength supports the "Magnificent 7," but broader macro risks, including tariffs and bond yields, favor the S&P 493 companies.

Risks to the Forecast

  • Policy Concerns:
    President-elect Donald Trump's plans for higher tariffs and tax cuts could raise inflation, limiting the Federal Reserve’s ability to ease rates further.

  • Market Volatility:
    Elevated risks tied to bond yields and geopolitical factors may create headwinds for US equities.

  • Upside Potential:
    A dovish Fed or favorable fiscal policies could enhance market performance, presenting additional upside opportunities.

Additional Projections

  • Earnings-Per-Share (EPS):
    S&P 500 companies' EPS is forecasted at $268 in 2025.
  • Economic Growth:
    The US GDP growth rate is expected to stabilize at 2.5%.

Despite macroeconomic challenges, both Goldman Sachs and Morgan Stanley remain optimistic about the S&P 500’s trajectory, projecting steady growth driven by corporate earnings strength and favorable economic conditions. However, trade policy and inflation risks may add volatility in the coming years.

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