KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
The Bank of England's split 6-3 vote to hold its key interest rate signals that a rate cut at the February meeting is a strong possibility, according to Suren Thiru, economics director at the Institute of Chartered Accountants.
Key Insights
Cautious Approach to Rate Cuts
- The Bank of England is expected to proceed cautiously with interest rate cuts next year due to rising inflation risks both domestically and internationally.
- "Rate setters are likely to take baby steps in cutting interest rates," said Thiru, emphasizing the challenges posed by complex inflation dynamics.
Inflation Challenges
- While inflation is expected to drift higher, it complicates the timing and pace of policy loosening, leaving the central bank with limited flexibility.
February Rate Cut in Focus
- The 6-3 vote suggests a rate cut could occur in February, but the pace and size of future cuts remain uncertain amid growing economic risks.
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