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
Financial markets are preparing for a potentially volatile week with two major events on the horizon: the US presidential election on Nov 5 and the Federal Reserve’s meeting on monetary policy. Both events could significantly influence market dynamics, as investors monitor the race between Republican Donald Trump and Democrat Kamala Harris and the Fed's latest stance on interest rates.
Trump Trades and Election Volatility: The so-called “Trump trade” has gained traction, with the US dollar rising and Treasury bonds selling off, reflecting hopes for potential deregulation under a Trump win. In contrast, Harris is seen as supportive of clean energy stocks, which may rally if she prevails. Investors are also closely watching the impact of congressional control and the possibility of contested results, both of which could drive market swings.
Fed's Policy Decision and Economic Data Impact: The Fed’s upcoming policy decision, expected to be a 25 basis point rate cut, may affect the S&P 500’s strong 20% rally this year. Strong economic data, including 2.8% growth in Q3 GDP, will likely shape Fed Chair Jerome Powell’s guidance. However, October's slow job growth, influenced by strikes and weather disruptions, adds complexity to the rate outlook.
Investor Takeaways:
- Trump win: May initially trigger profit-taking on Trump-related trades.
- Harris win: Likely boosts clean energy but could spur market repositioning.
- Fed Guidance: Investors seek clarity on the Fed's rate-cutting path given mixed economic indicators.
As markets brace for potential volatility, both the election and the Fed's decision remain critical for investors seeking stability amid uncertain economic and political landscapes.
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