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 Recap:
- U.S. stocks saw a sharp decline on Thursday, with S&P 500 entering correction territory, down 1.39%, and the Nasdaq falling 1.96%.
- Trade tensions escalated, particularly over tariffs: President Trump threatened 200% tariffs on EU alcoholic beverages in retaliation to the EU’s proposed 50% duty on American whiskey.
- Despite positive inflation news, with the Producer Price Index staying flat, trade war fears overshadowed market sentiment.
Stocks to Watch:
- Intel (INTC.US) surged 14.6% after announcing the appointment of Lip-Bu Tan, former Cadence Design Systems CEO, as the new chief executive.
- Adobe (ADBE.US) faced a steep 13.9% drop due to disappointing Q2 guidance, overshadowing better-than-expected Q1 results.
Bursa Market Insight:
- The FTSE Bursa Malaysia KLCI rebounded 1.70%, reaching 1,510.03 after a five-day sell-off. The rebound was driven by bargain hunting, particularly in construction and banking sectors.
- The index entered oversold territory, encouraging investors to pick up undervalued stocks. However, concerns about slowing Western demand for Asian exports remain a key concern.
- Analysts expect the FBM KLCI to trade between 1,500 and 1,530 in the near term, with continued accumulation likely.
Healthcare Sector Outlook:
- RHB Investment Bank sees a strong 2025 for Malaysia’s healthcare sector, driven by investor demand and an ageing population. New government health insurance plans are boosting access, though DRG pricingchallenges may affect sentiment.
- KPJ Healthcare remains the top pick, with an “overweight” sector rating.
Stocks to Watch:
- UWC (5292.MY) reported a strong 2QFY2025, with net profit more than doubling year-on-year, benefiting from the semiconductor industry’s recovery. No dividend was declared.
- APOLLO (6432.MY) showed mixed results in 3QFY2025, with a slight revenue increase due to higher domestic sales, but net profit dropped sharply due to lower profit margins and the absence of one-time gains.
- HIBISCS (5199.MY) declared its third interim dividend, raising the total for FY2025 to seven sen per share, with confidence in meeting its dividend guidance based on oil price forecasts.
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