KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
UK Chancellor Rachel Reeves admitted she underestimated the budget gap when she told voters in June that Labour wouldn’t raise new taxes. Speaking on Sunday, Reeves acknowledged her error, explaining that after a briefing from senior Treasury officials, she realized the public finances were in a much more dire state than anticipated.
In a major shift, her recent budget introduced a £40 billion package of new tax measures, including payroll levies and inheritance tax changes not outlined in Labour’s campaign promises. This unprecedented fiscal plan also entails a significant increase in borrowing, raising concerns about inflation and potentially influencing the Bank of England’s rate-cut trajectory.
Reeves pledged that further major tax increases would not be necessary, saying, “We never need to do that again.” However, some economists predict additional revenue-raising measures may still be required to maintain funding across government departments.
Meanwhile, the Conservative opposition, now led by Kemi Badenoch, criticized Labour for failing to be forthright with voters. Badenoch, the first Black leader of a major British political party, warned against over-relying on tax and borrowing, emphasizing that this approach risks continued economic decline.
Reeves, while optimistic, admitted the current budget may impact businesses, potentially resulting in higher costs for workers through lower wage growth or increased prices.
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