KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Wall Street’s major indexes gained on Friday, with the S&P 500 and Nasdaq hitting intraday record highs. The boost came as traders increased bets on a December Federal Reserve rate cut, fueled by stronger-than-expected November jobs data.
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Jobs Data Sparks Optimism
U.S. job growth surged in November, rebounding from hurricane and strike disruptions. While the labor market showed resilience, analysts said the report suggests a steady easing in conditions, paving the way for the Fed to lower interest rates.
“This jobs report hits the Goldilocks zone — not too hot to derail rate cuts, but not too cold to spark economic fears,” said Josh Jamner, investment strategy analyst at ClearBridge Investments.
Traders now see a 90% probability of a 25-basis-point rate cut at the Fed’s Dec. 17-18 meeting, up from 67% before the jobs report.
Market Highlights
Indexes:
- Dow Jones Industrial Average rose 0.11% to 44,815.17.
- S&P 500 gained 0.36% to 6,097.33.
- Nasdaq Composite climbed 0.72% to 19,843.00.
Sector Performance:
- The Consumer Discretionary sector surged 1.3%, reaching a record high. Tesla (+1.1%) and Amazon (+1.4%) led the gains.
- Lululemon Athletica soared 17.2% after raising its full-year forecast, citing strong demand for athletic wear.
- Ulta Beauty jumped 12.1%, reflecting robust holiday demand for perfumes and makeup.
Fed and Economic Indicators
Fed officials, including San Francisco Fed President Mary Daly, are set to speak before a media blackout begins on Saturday ahead of the Fed’s policy meeting.
Consumer sentiment showed unexpected strength, with the University of Michigan survey posting a preliminary reading of 74 in December, surpassing estimates of 73.
Broader Market Context
Weekly Gains:
- S&P 500 and Nasdaq are on track for a third consecutive week of gains.
- The Dow is poised for minor losses but has seen a robust year overall, buoyed by investor enthusiasm for AI-driven growth and megacap tech stocks.
Political Tailwinds: President-elect Donald Trump's anticipated tax cuts and regulatory easing are expected to further boost corporate performance.
Market Breadth and Activity
- Advancing stocks outpaced decliners by a 1.81-to-1 ratio on the NYSE and 1.97-to-1 on the Nasdaq.
- The S&P 500 recorded 20 new 52-week highs, while the Nasdaq posted 67 new highs.
With rate-cut hopes and strong corporate performance leading the way, Wall Street appears poised to close the week on a high note.
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