KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
The global economy faces a turbulent road ahead in 2025, with risks stemming from geopolitics, trade wars, and structural challenges in major economies.
Key Challenges:
- Trade War Risks: A potential Donald Trump presidency could spark a global trade war through import tariffs of 10% to 20%, escalating to 60% for Chinese goods, risking fresh inflation and economic slowdown.
- Geopolitical Uncertainty: Conflicts in Ukraine and the Middle East add unpredictability to global energy costs and supply chains.
- Economic Disparities: While wealthy nations grapple with voter dissatisfaction over cost-of-living crises, poorer countries face their worst economic state in two decades, exacerbated by weaker trade and funding conditions.
- Debt and Spending Strains: Governments face stretched budgets due to climate action, military spending, and ageing populations, raising fears of a potential financial crisis if debt levels continue to climb unchecked.
- European Political Deadlocks: Political stagnation in Germany and France hinders efforts to address investment shortfalls and skills shortages in the eurozone.
- China’s Transition: Mounting pressure on China to shift from manufacturing dependency to boosting consumer spending poses significant challenges for the world's second-largest economy.
Outlook for 2025:
- Interest Rate Trajectory: Policymakers are banking on central banks completing their return to normal interest rate levels, but inflation and geopolitical factors could disrupt this progress.
- Currency Pressures: A stronger US dollar could divert investments away from emerging economies and increase the cost of dollar-denominated debt.
- Global Stability: The IMF warns of uncertain times, with energy costs, trade policies, and voter dissatisfaction being pivotal factors shaping economic performance.
Implications:
The year ahead demands cautious optimism, with policymakers and financial markets bracing for volatility while striving to maintain global economic stability.
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