KUALA LUMPUR, March 21 (Bernama) -- Bursa Malaysia’s benchmark index ended the day marginally higher supported by renewed buying interest in blue-chip stocks, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.29 points to 1,505.45 from Thursday’s close of 1,504.16. The benchmark index opened 0.29 of-a-point lower at 1,503.87 and moved between 1,503.71 and 1,513.23 throughout the day. On the broader market, losers outpaced gainers 513 to 371 while 428 counters were unchanged, 1,125 untraded, and 29 suspended. Turnover rose to 3.43 billion units worth RM4.28 billion from 3.27 billion units worth RM2.64 billion on Thursday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said buying interest was seen particularly within defensive sectors such as utilities, healthcare, and banking during the morning session.
Key Takeaways:
Global Economic Concerns: Asian stocks dropped on Friday, closing the week on a subdued note as deepening geopolitical tensions and fears of the U.S. tariffs’ impact on global growth weighed heavily on investors. This uncertainty kept gold near record highs, with traders seeking safe-haven assets.
Central Banks Hold Steady: The U.S. Federal Reserve, Bank of Japan (BOJ), and Bank of England all opted to maintain their interest rates this week, reflecting the cautious stance of policymakers amid growing global economic uncertainty, largely driven by U.S. trade policies under President Trump.
Rising Geopolitical Tensions: Israeli airstrikes on Gaza and Ukrainian drone strikes on Russian military sites heightened global tensions, pushing investors towards safer investments like gold.
Focus on U.S. Tariffs: Investors are particularly on edge ahead of the U.S. administration’s planned tariff hikes on April 2. These reciprocal tariffs could further escalate inflation and slow down global economic growth, fueling more market volatility.
Asian Markets Impact: The MSCI Asia-Pacific Index (excluding Japan) dropped 0.22%. However, Japan’s Nikkei bucked the trend, rising 0.38%, led by gains in banking stocks. Meanwhile, China’s stock market eased, with Hong Kong's Hang Seng Index falling 0.68%.
Currency Movements: The U.S. dollar remained steady at 103.84 against a basket of currencies, bolstered by cautious optimism about U.S. economic policies. The Japanese yen, which hit a five-month high last week, remains strong amid expectations of further rate hikes by the BOJ.
Commodities Outlook: Oil prices rose, with both Brent crude and West Texas Intermediate crude set for their strongest weekly performance since January. Gold, though easing slightly, remains on track for a third consecutive week of gains, driven by safe-haven demand amid growing market volatility.
Market Impact:
Global trade tensions, particularly those stemming from U.S. tariff threats, have placed significant pressure on Asian stocks and commodities this week. While U.S. stocks showed slight volatility, Asian investors are closely watching for further developments, especially regarding the potential impact of Trump’s tariff policies and geopolitical developments. Safe-haven assets like gold are seeing consistent demand as uncertainty looms.
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