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.
Key Highlights:
- Overall Decline: US industrial production dropped 0.1% in November, marking the third consecutive monthly decline, against expectations of a 0.3% rise.
- Weaker Segments:
- Utilities: Output fell the most in four months.
- Mining: Recorded the largest decline since May.
- Manufacturing: Increased 0.2%, but below expectations, following a revised 0.7% decline in October.
Sector Analysis
- Aerospace Equipment: Despite the end of a Boeing machinists' strike, aircraft parts production fell, dragging down the sector.
- Utilities: Declines reflect lower seasonal demand and output volatility.
- Mining: Reduced extraction activities contributed to the weakest results since May.
Why It Matters
- High Borrowing Costs: Companies continue to limit capital spending due to elevated interest rates.
- Export Challenges: A strong dollar and sluggish global markets are adding headwinds for US manufacturers.
- Economic Growth Signals: Persistent weakness in industrial output raises concerns about the manufacturing sector’s recovery heading into 2025.
Looking Ahead
Manufacturers may face ongoing struggles due to:
- Tepid global demand impacting exports.
- Elevated interest rates slowing business investments.
- Continued strength of the US dollar, which makes American goods less competitive abroad.
This decline adds pressure on the Federal Reserve as it assesses the economic landscape ahead of its upcoming policy decisions.
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