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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 Lowers Australia’s 2025 Growth Forecast on Trump Tariff Concerns

Key Takeaway: Goldman Sachs cuts Australia’s GDP forecast to 1.8% for 2025, citing anticipated spillovers from President-elect Donald Trump’s proposed 60% tariffs on Chinese exports.



Goldman’s Revised Outlook

  • Economic Growth:
    • 2025 GDP forecast lowered from 2% to 1.8%, reflecting the impact on exports to China, Australia’s largest trading partner.
  • Tariff Impact:
    • Trump’s protectionist policies are expected to hurt China-Australia trade, creating broader economic headwinds for Australia.

Monetary Policy Outlook

  • Interest Rates:
    • Goldman predicts the Reserve Bank of Australia (RBA) will cut rates in February 2025, reaching a terminal rate of 3.25% by November.
    • Current market consensus expects easing to begin in May, highlighting Goldman’s more dovish stance.
  • Inflation and Spending:
    • Elevated rates (currently 4.35%) have dampened consumer spending, contributing to the slowdown.

Fiscal Stimulus and Election Dynamics

  • Federal Election by May 2025:
    • Voter-friendly policies could provide an economic boost, with measures like:
      • Energy rebates
      • Expanded rental assistance
      • University debt reductions
  • Upside Risks:
    • Potential for new fiscal stimulus ahead of elections may counteract some tariff-related challenges.

New Zealand Outlook

  • Interest Rates:
    • Goldman expects the Reserve Bank of New Zealand (RBNZ) to cut rates in 50 basis-point increments in November and February, slowing to 25 basis points per meeting.
    • Terminal rate projected at 3% by July 2025.

Broader Implications

Trump’s tariffs are poised to disrupt global trade, disproportionately affecting economies heavily reliant on China, like Australia. While fiscal stimulus ahead of elections may cushion the impact, trade uncertainty and high rates will remain key challenges for Australia’s growth trajectory in 2025.

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